SEC’s and Federal Reserve’s Proposed Regulation R

Gramm-Leach-Bliley Act (GLBA)Office of the Comptroller of the Currency (OCC)Privacy

PURPOSE AND BACKGROUND

This issuance is intended to notify all national banks and national bank examiners that recently the Securities and Exchange Commission (SEC) and the Board of Governors of the Federal Reserve System (Board) jointly issued proposed rules that define the extent to which securities brokerage activities of banks are subject to SEC regulation. The proposed rules, known as "Regulation R," would implement provisions of the Gramm–Leach–Bliley Act of 1999 (GLBA) that set forth certain exemptions for banks from the broker-dealer registration requirements of the Securities Exchange Act of 1934 (Exchange Act). In developing this proposal, the SEC and the Board consulted with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS).

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