SEC, Fed Propose Regulation R to Implement Bank Broker Provisions of Gramm-Leach-Bliley Act

January 01, 2007

As we previously reported, on December 13, 2006, the Securities and Exchange Commission ("SEC" or the "Commission") voted to publish for public comment new proposed rules under the Exchange Act to define the relationship between banks and brokers. On December 18, 2006 the Board of Governors of the Federal Reserve System (the "Fed") joined the SEC in a rule proposal retitled Regulation R, and the release of the joint rule proposal occurred the same day. We briefly summarize some of Regulation R's more notable departures from the SEC's previous rulemaking below.

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