Regulation R

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DEFINITION

Regulation R implements provisions of the Gramm-Leach-Bliley Act of 1999 regarding banks that are also involved in securities activities. Regulation R details exceptions for banks from the definition of "broker" and "dealer." Activities of banks that fall outside of these exceptions are required to be done by a registered broker-dealer.

INVESTOPEDIA EXPLAINS

Regulation R has several exceptions in areas such as third party brokerage, trust and fiduciary activities, sweep accounts, safekeeping and custody activities and others. In addition, Regulation R provides conditional exemptions in areas such as mutual funds, insurance and some securities lending activities.


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