12 C.F.R. Subpart D—Securities Trading Policies and Procedures
Title 12 - Banks and Banking
If you effect securities transactions for customers, you must maintain and follow policies and procedures that meet all of the following requirements: (a) Your policies and procedures must assign responsibility for the supervision of all officers or employees who: (1) Transmit orders to, or place orders with, registered broker-dealers; (2) Execute transactions in securities for customers; or (3) Process orders for notice or settlement purposes, or perform other back office functions for securities transactions that you effect for customers. Policies and procedures for personnel described in this paragraph (a)(3) must provide supervision and reporting lines that are separate from supervision and reporting lines for personnel described in paragraphs (a)(1) and (2) of this section. (b) Your policies and procedures must provide for the fair and equitable allocation of securities and prices to accounts when you receive orders for the same security at approximately the same time and you place the orders for execution either individually or in combination. (c) Your policies and procedures must provide for securities transactions in which you act as agent for the buyer and seller (crossing of buy and sell orders) on a fair and equitable basis to the parties to the transaction, where permissible under applicable law. (d) Your policies and procedures must require your officers and employees to file the personal securities trading reports described at §551.150, if the officer or employee: (1) Makes investment recommendations or decisions for the accounts of customers; (2) Participates in the determination of these recommendations or decisions; or (3) In connection with their duties, obtains information concerning which securities you intend to purchase, sell, or recommend for purchase or sale. An officer or employee described in §551.140(d) must report all personal transactions in securities made by or on behalf of the officer or employee if he or she has a beneficial interest in the security. (a) Contents and filing of report. The officer or employee must file the report with you within ten business days after the end of each calendar quarter. The report must include the following information: (1) The date of each transaction, the title and number of shares, the interest rate and maturity date (if applicable), and the principal amount of each security involved. (2) The nature of each transaction (i.e., purchase, sale, or other type of acquisition or disposition). (3) The price at which each transaction was effected. (4) The name of the broker, dealer, or other intermediary effecting the transaction. (5) The date the officer or employee submitted the report. (b) Report not required for certain transactions. Your officer or employee is not required to report a transaction if: (1) He or she has no direct or indirect influence or control over the account for which the transaction was effected or over the securities held in that account; (2) The transaction was in shares issued by an open-end investment company registered under the Investment Company Act of 1940; (3) The transaction was in direct obligations of the government of the United States; (4) The transaction was in bankers' acceptances, bank certificates of deposit, commercial paper or high quality short term debt instruments, including repurchase agreements; or (5) The officer or employee had an aggregate amount of purchases and sales of $10,000 or less during the calendar quarter. (c) Alternate report. When you act as an investment adviser to an investment company registered under the Investment Company Act of 1940, an officer or employee that is an “access person” may fulfill his or her reporting requirements under this section by filing with you the “access person” personal securities trading report required by SEC Rule 17j–1(d), 17 CFR 270.17j–1(d).
Title 12: Banks and Banking
PART 551—RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR SECURITIES TRANSACTIONS
Subpart D—Securities Trading Policies and Procedures
§ 551.140 What policies and procedures must I maintain and follow for securities transactions?
§ 551.150 How do my officers and employees file reports of personal securities trading transactions?
