---
kind: "section"
citation: "17 C.F.R. § 247.741"
title: "17"
number: "247.741"
heading: "Exemption for banks effecting transactions in money market funds."
url: "https://uscodex.org/cfr/17/247.741"
---

# §247.741. Exemption for banks effecting transactions in money market funds.

- (a) A bank is exempt from the definition of the term “broker” under section 3(a)(4) of the Act ([15 U.S.C. 78c(a)(4)](/usc/15/78c.md?p=a-4)) to the extent that it effects transactions on behalf of a customer in securities issued by a money market fund, provided that:
  - (1) The bank either
    - (i) Provides the customer, directly or indirectly, any other product or service, the provision of which would not, in and of itself, require the bank to register as a broker or dealer under section 15(a) of the Act ([15 U.S.C. 78o(a)](/usc/15/78o.md?p=a)); or
    - (ii) Effects the transactions on behalf of another bank as part of a program for the investment or reinvestment of deposit funds of, or collected by, the other bank; and
  - (2)
    - (i) The class or series of securities is no-load; or
    - (ii) If the class or series of securities is not no-load
      - (A) The bank or, if applicable, the other bank described in paragraph (a)(1)(B) of this section provides the customer, not later than at the time the customer authorizes the securities transactions, a prospectus for the securities; and
      - (B) The bank and, if applicable, the other bank described in paragraph (a)(1)(B) of this section do not characterize or refer to the class or series of securities as no-load.
- (b) **Definitions.** For purposes of this section:
  - (1) **Money market fund—** has the same meaning as in [§ 247.740(b)](/cfr/17/247.740.md?p=b).
  - (2) **No-load—** has the same meaning as in [§ 247.740(c)](/cfr/17/247.740.md?p=c).

## Notes

### Amendments

[72 FR 56554, Oct. 3, 2007, as amended at 73 FR 20780, Apr. 17, 2008]

### Authority

Authority: 15 U.S.C. 78c, 78 o , 78q, 78w, and 78mm.

### Source

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

### Amendments

[72 FR 56554, Oct. 3, 2007, as amended at 73 FR 20780, Apr. 17, 2008]