ICBA - Publications - OTS Broker-Dealer Rule

OTS Broker-Dealer Rule

WWR Article - June 21, 2002

OTS has proposed recordkeeping and customer disclosure standards for federal savings associations that may now perform certain broker-dealer activities, just like banks, without registering with the SEC. The proposed rule covers broker-dealer activities such as third party brokerage, trust, permissible securities and sweep accounts.

The rule provides formal guidance for securities transactions, so that examiners can evaluate compliance with securities laws and assess the impact of securities activities on the safety and soundness of thrifts. Comments are due August 12.