Source: http://ecfr.io/Title-17/pt17.4.247
Timestamp: 2019-11-16 20:51:15
Document Index: 400724125

Matched Legal Cases: ['art 247', 'art 247', 'art 247', 'ART 247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247', '§247']

[17 CFR 247] Title 17 Part 247 : Code of Federal Regulations ';
Title 17 Part 247
Title 17 → Chapter II → Part 247
PART 247—REGULATION R—EXEMPTIONS AND DEFINITIONS RELATED TO THE EXCEPTIONS FOR BANKS FROM THE DEFINITION OF BROKER
§247.100 Definition.
§247.700 Defined terms relating to the networking exception from the definition of “broker.”
§247.701 Exemption from the definition of “broker” for certain institutional referrals.
§247.721 Defined terms relating to the trust and fiduciary activities exception from the definition of “broker.”
§247.722 Exemption allowing banks to calculate trust and fiduciary compensation on a bank-wide basis.
§247.723 Exemptions for special accounts, transferred accounts, foreign branches and a de minimis number of accounts.
§247.740 Defined terms relating to the sweep accounts exception from the definition of “broker.”
§247.741 Exemption for banks effecting transactions in money market funds.
§247.760 Exemption from definition of “broker” for banks accepting orders to effect transactions in securities from or on behalf of custody accounts.
§247.771 Exemption from the definition of “broker” for banks effecting transactions in securities issued pursuant to Regulation S.
§247.772 Exemption from the definition of “broker” for banks engaging in securities lending transactions.
§247.775 Exemption from the definition of “broker” for banks effecting certain excepted or exempted transactions in investment company securities.
§247.776 Exemption from the definition of “broker” for banks effecting certain excepted or exempted transactions in a company's securities for its employee benefit plans.
§247.780 Exemption for banks from liability under section 29 of the Securities Exchange Act of 1934.
§247.781 Exemption from the definition of “broker” for banks for a limited period of time.
Authority: 15 U.S.C. 78c, 78o, 78q, 78w, and 78mm.
Source: 72 FR 56554, Oct. 3, 2007, unless otherwise noted.
(2) Bank determinations and obligations—(i) Disclosures. The bank provides the high net worth customer or institutional customer the information set forth in paragraph (b) of this section
(B) Makes reasonable efforts to reclaim the portion of the referral fee paid to the bank employee for the referral that does not, following any required remedial action, meet the requirements of this section and that exceeds the amount otherwise permitted under section 3(a)(4)(B)(i)(VI) of the Act (15 U.S.C. 78c(a)(4)(B)(i)(VI)) and §247.700.
(iii) Suitability or sophistication determination by broker or dealer—(A) Contingent referral fees. In any case in which payment of the referral fee is contingent on completion of a securities transaction at the broker or dealer, the broker or dealer, before such securities transaction is conducted, perform a suitability analysis of the securities transaction in accordance with the rules of the broker or dealer's applicable self-regulatory organization as if the broker or dealer had recommended the securities transaction.
(c) Receipt of other compensation. Nothing in this section prevents or prohibits a bank from paying or a bank employee from receiving any type of compensation that would not be considered incentive compensation under §247.700(b)(1) or that is described in §247.700(b)(2).
(1) High net worth customer—(i) General. High net worth customer means:
(e) Inflation adjustments—(1) In general. On April 1, 2012, and on the 1st day of each subsequent 5-year period, each dollar amount in paragraphs (d)(1) and (d)(2) of this section shall be adjusted by:
(c) Advertising restrictions—(1) In general. A bank complies with the advertising restriction in section 3(a)(4)(B)(ii)(II) of the Act (15 U.S.C. 78c(a)(4)(B)(ii)(II)) if advertisements by or on behalf of the bank do not advertise—
(2) Advertisement. For purposes of this section, the term advertisement has the same meaning as in §247.760(h)(2).
(1) The bank meets the other conditions for the exception from the definition of the term “broker” under sections 3(a)(4)(B)(ii) and 3(a)(4)(C) of the Act (15 U.S.C. 78c(a)(4)(B)(ii) and 15 U.S.C. 78c(a)(4)(C)), including the advertising restrictions in section 3(a)(4)(B)(ii)(II) of the Act (15 U.S.C. 78c(a)(4)(B)(ii)(II) as implemented by §247.721(c); and
(a) Short-term accounts. A bank may, in determining its compliance with the chiefly compensated test in §247.721(a)(1) or §247.722(a)(2), exclude any trust or fiduciary account that had been open for a period of less than 3 months during the relevant year.
(b) Accounts acquired as part of a business combination or asset acquisition. For purposes of determining compliance with the chiefly compensated test in §247.721(a)(1) or §247.722(a)(2), any trust or fiduciary account that a bank acquired from another person as part of a merger, consolidation, acquisition, purchase of assets or similar transaction may be excluded by the bank for 12 months after the date the bank acquired the account from the other person.
(c) Non-shell foreign branches—(1) Exemption. For purposes of determining compliance with the chiefly compensated test in §247.722(a)(2), a bank may exclude the trust or fiduciary accounts held at a non-shell foreign branch of the bank if the bank has reasonable cause to believe that trust or fiduciary accounts of the foreign branch held by or for the benefit of a U.S. person as defined in 17 CFR 230.902(k) constitute less than 10 percent of the total number of trust or fiduciary accounts of the foreign branch.
(d) Accounts transferred to a broker or dealer or other unaffiliated entity. Notwithstanding section 3(a)(4)(B)(ii)(I) of the Act (15 U.S.C. 78c(a)(4)(B)(ii)(I)) and §247.721(a)(1) of this part, a bank operating under §247.721(a)(1) shall not be considered a broker for purposes of section 3(a)(4) of the Act (15 U.S.C. 78c(a)(4)) solely because a trust or fiduciary account does not meet the chiefly compensated standard in §247.721(a)(1) if, within 3 months of the end of the year in which the account fails to meet such standard, the bank transfers the account or the securities held by or on behalf of the account to a broker or dealer registered under section 15 of the Act (15 U.S.C. 78o) or another entity that is not an affiliate of the bank and is not required to be registered as a broker or dealer.
(e) De minimis exclusion. A bank may, in determining its compliance with the chiefly compensated test in §247.721(a)(1), exclude a trust or fiduciary account if:
(1) Money market fund has the same meaning as in §247.740(b).
(2) No-load has the same meaning as in §247.740(c).
(c) Employee compensation restriction. A bank may accept orders pursuant to this section for a securities transaction for an account described in paragraph (a) or (b) of this section only if no bank employee receives compensation, including a fee paid pursuant to a plan under 17 CFR 270.12b-1, from the bank, the executing broker or dealer, or any other person that is based on whether a securities transaction is executed for the account or that is based on the quantity, price, or identity of securities purchased or sold by such account, provided that nothing in this paragraph shall prohibit a bank employee from receiving compensation that would not be considered incentive compensation under §247.700(b)(1) as if a referral had been made by the bank employee, or any compensation described in §247.700(b)(2).
(b) For purposes of this section, the term employee benefit plan account has the same meaning as in §247.760(h)(4).