Sec. 218.776 Exemption from the definition
of ‘‘broker’’ for banks effecting certain
excepted or exempted transactions in a
company’s securities for its employee
benefit plans.
(a) A bank that meets the conditions
for an exception or exemption from the
definition of the term ‘‘broker’’ except
for the condition in section 3(a)(4)(C)(i)
of the Act (15 U.S.C. 78c(a)(4)(C)(i)), is
exempt from such condition to the
extent that it effects a transaction in the
securities of a company directly with a
transfer agent acting for the company
that issued the security, if:
(1) No commission is charged with
respect to the transaction;
(2) The transaction is conducted by
the bank solely for the benefit of an
employee benefit plan account;
(3) Any such security is obtained
directly from:
(i) The company; or
(ii) An employee benefit plan of the
company; and
(4) Any such security is transferred
only to:
(i) The company; or
(ii) An employee benefit plan of the
company.
(b) For purposes of this section, the
term employee benefit plan account has
the same meaning as in §___.760(h)(4).
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