Regulation R – Broker "Push-out" Rules

Regulation R was jointly adopted by the Securities and Exchange Commission (SEC) and the Board of Governors of the Federal Reserve System (FRB) in September of 2007 to implement provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) governing bank brokerage activities.¹ Regulation R defines key terms in some of the exceptions for banks from the definition of "broker" under the Securities Exchange Act of 1934 (the "Exchange Act"),² as well as provides certain related exemptions.

Regulation R will generally become effective on December 3, 2007, except for Rule 781, which became effective on September 28, 2007. As discussed below, Rule 781 exempts banks from complying with the regulation during a transitional period that will last until the first day of a bank’s fiscal year commencing after September 30, 2008.