WASHINGTON — The Securities and Exchange Commission said late last week that it has extended the temporary exemption of banks from the definition of "broker" until Sept. 28, 2007.

The temporary exemption was scheduled to end July 2, but the agency granted more time to ensure that it and the Board of Governors of the Federal Reserve will have time to carefully consider public comments. The former Regulation B proposed in Spring 2004, now titled Regulation R, allowed credit unions to enter into the same networking arrangements with broker-dealers that banks can, sweep deposit accounts into no-load money market funds under the same terms as banks and to buy and sell securities for investment purposes for themselves, or for accounts for which they act as trustee or fiduciary.

However, the passage of the Financial Services Regulatory Relief Act of 2006 in late 2006 required the SEC to work with the Fed to jointly issue another proposal to clarify these exceptions. This provision of Reg Relief extended these exceptions to thrifts, but not to credit unions. NACUSO, CUNA and NAFCU have continued to urge credit union inclusion. An SEC spokesman said he is checking the latest status.