---
kind: "section"
citation: "12 C.F.R. § 218.776"
title: "12"
number: "218.776"
heading: "Exemption from the definition of “broker” for banks effecting certain excepted or exempted transactions in a company's securities for its employee benefit plans."
url: "https://uscodex.org/cfr/12/218.776"
---

# §218.776. Exemption from the definition of “broker” for banks effecting certain excepted or exempted transactions in a company's securities for its employee benefit plans.

- (a) A bank that meets the conditions for an exception or exemption from the definition of the term “broker” except for the condition in section 3(a)(4)(C)(i) of the Act ([15 U.S.C. 78c(a)(4)(C)(i)](/usc/15/78c.md?p=a-4-C-i)), is exempt from such condition to the extent that it effects a transaction in the securities of a company directly with a transfer agent acting for the company that issued the security, if:
  - (1) No commission is charged with respect to the transaction;
  - (2) The transaction is conducted by the bank solely for the benefit of an employee benefit plan account;
  - (3) **Any such security is obtained directly from—**
    - (i) The company; or
    - (ii) An employee benefit plan of the company; and
  - (4) **Any such security is transferred only to—**
    - (i) The company; or
    - (ii) **An employee benefit plan of the company.**
- (b) For purposes of this section, the term employee benefit plan account has the same meaning as in [§ 218.760(h)(4)](/cfr/12/218.760.md?p=h-4).

## Notes

### Authority

Authority: 15 U.S.C. 78c(a)(4)(F).

### Source

Source: Reg. R, 72 FR 56554, Oct. 3, 2007, unless otherwise noted.