SEC: New Proposed Regulation B

ABA Contact: Sally Miller, (202) 663-5325
Published: 69 Federal Register 39682; June 30, 2004
Comments Due: September 1, 2004
Disposition: Filed


Regulation B, or the broker push-out rules, implement the bank exceptions from the definition of broker under Title II of the Gramm-Leach-Bliley Act (GLBA). Instead of a blanket exemption from broker-dealer registration, the new rules create a series of exceptions under which a bank could retain its operations within the bank, and not have to push them out into a broker-dealer — if the institution fits with in the parameters.

This proposal is of specific concern to banks with trust powers, as well as any intuitions that offers sweeps programs to their customers, among others. Regulation B as it now stands forces banks to change their existing relationships with their traditional customers and makes serving those customers so much more difficult.

2004 Regulations Chart
Federal Register
Comment Letter