What is regulation R?

Summary of the Article

The article provides information about various aspects of FDIC regulation R. It explains that Regulation R clarifies permissible bank brokerage activities under the GLBA exceptions. The rules were developed through consultations between the Board, the SEC, the FDIC, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The article also discusses the trust and fiduciary exemption provided by Regulation R, the rule 760 regarding the exemption from the definition of “broker” for banks accepting orders in securities from custody accounts, and the meaning of the letter “R” in banking terms. Additionally, it addresses the issue of banks denying access to money in frozen accounts, the difference between fiduciary and trustee, and the fiduciary obligation to a trust. The article further touches upon rule 741 and rule 701 of Regulation R, as well as regulation Y, which governs the corporate practices of bank holding companies and state-member banks.

1. What is the FDIC regulation R?

Regulation R, also known as “Regulation R,” clarifies permissible bank brokerage activities under the GLBA exceptions. It was developed through consultations between the Board, the SEC, the FDIC, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

2. What is regulation R trust and fiduciary exemption?

According to Regulation R, a financial institution can exclude trust and fiduciary accounts that were opened for fewer than three months or that were acquired during a merger and acquisition transaction in the previous 12 months.

3. What is rule 760 of regulation R?

Rule 760 in Regulation R provides an exemption from the definition of “broker” for banks accepting orders to effect transactions in securities from or on behalf of custody accounts.

4. What is regulation W?

Regulation W is a U.S. Federal Reserve System (FRS) regulation that sets limits on certain transactions between depository institutions, such as banks and their affiliates. It also requires collateral for certain transactions.

5. What does R stand for in banking?

In banking, the letter “R” stands for “Receivables,” which is used by bankers to describe money owed to a business that is yet to be received.

6. Can a bank deny you access to your money?

A bank can freeze accounts if they suspect illegal activity, such as money laundering, terrorist financing, or writing bad checks. Deposits can still be received, but withdrawals and transfers are not permitted.

7. What is the difference between fiduciary and trustee?

A trustee is the person or entity holding legal title to trust property, while a fiduciary is a person or institution managing money or property for another, having a duty to exercise a standard of care.

8. What is the fiduciary obligation to the trust?

The fiduciary duties of trustees refer to the obligations when managing a trust, such as duties of care, loyalty, and good faith. Trustees are required to manage the trust reasonably and avoid self-dealing.

9. What is rule 741 of Regulation R?

Rule 741 allows banks, under certain conditions, to sweep funds from a deposit account into a money market fund that is not a no-load fund.

10. What is rule 701 of Regulation R?

Regulation R, Rule 701 requires brokers or dealers to notify the bank if they make certain determinations regarding the financial status of the customer, a bank employee’s statutory disqualification status, and compliance with certain rules and regulations.

11. What is regulation Y?

Regulation Y governs the corporate practices of bank holding companies and certain practices of state-member banks. It also describes transactions requiring approval from the Federal Reserve for bank holding companies.