Federal Reserve Board
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
FOR IMMEDIATE RELEASE
April 19, 1996
Sales Practices for Government Securities Proposed
The three bank regulatory agencies will propose for public comment sales practice rules for banks that act as government securities brokers or dealers. The rules implement provisions of 1993 amendments to the Government Securities Act. The notice of proposed rulemaking will appear in the Federal Register next week.
The agencies' proposals are based on proposed rules by the National Association of Securities Dealers (NASD) for nonbank brokers and dealers in government securities. The rules were published for comment by the Securities and Exchange Commission on October 24, 1995 and March 21, 1996. .
The proposals, based upon the NASD rules, that the agencies are considering applying to banks would:
The agencies request comment on whether these sections of the NASD rules should apply to banks.
In addition, the agencies request comment on whether other NASD rules on government securities sales should apply to banks. For example, the agencies request comment on whether NASD rules governing supervision of the personnel who sell securities should be applied to banks.
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