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F ederal Reserve Bank of Dallas DALLAS, TEXAS 75222 C i r c u l a r No. 77-105 S eptem ber 22, 1977 A M E N D M E N T T O R E G U LA TIO N H M u n ic ip a l S e c u r ity D e ale rs T O A L L MEMBER BANKS A N D BANK HOLDING COMPANIES IN TH E E LE VE N TH FEDERAL RESERVE D IS T R IC T : T h e Board of G o v e rn o rs has a dopte d, e ffe ctive O ctober 31, 1977, an am endm ent to R e g u latio n H , "M e m b e rs h ip of State B a n k in g Institutions in the Fe dera l R e s e rv e S y s te m ," th a t r e q u ir e s State m em ber b a n k s , and t h e ir s u b s id ia r ie s , d e p a rtm e n ts , and d iv is io n s that a r e m unicipal s e c u r i ties d e a le rs to file w ith the Board c e rta in inform ation about persons who a r e associated w ith them as m unic ip a l s e c u ritie s p r in c ip a ls o r r e p r e s e n ta tiv e s . Forms M S D -4 and M S D -5 w e r e also adopted for use in com plying w ith the am endm ent. T h e Board w i ll send a copy of the am endm ent and e x p la n a to r y m a teria l to each State m em ber b a n k th a t is r e g is te r e d as a m unicipal secu r i t y d e a l e r . Forms M S D -4 and M S D -5 a r e be in g p r i n t e d . T h e y should be a v a ila b le soon and w i ll be d is tr ib u te d to re g is tr a n ts b y the Board of G o v e r n o r s . A d d itio n a l copies w i ll be a v a ila b le from the Federal R e se rv e Banks. In a d d itio n , the Board has d e te rm in e d not to adopt the proposed am endm ent to R e gulation Y , "B a n k H olding C o m p a n ie s ," th a t had been is sued for comment in o u r C i r c u l a r No. 7 7 -4 8 , dated A p r i l 20, 1977, along w ith the R egulation H p ro p o s a l. It d ecided th a t action on the R egulation Y am endment should a w a it a decision on its e a r l i e r p r o p o s a l, on w h ic h it d e fe r r e d action last f a l l , th a t w ould p e r m it b a n k holding companies g e n e r a lly to engage in c e rta in m unicipal s e c u ritie s a c t iv itie s . M em ber banks and others should file the enclosed am endm ent to R egulation H in t h e i r R egulations B i n d e r . A d d itio n a l copies w i ll be fu rn is h e d upon re q u es t to the S e c r e ta r y 's Office of this B a n k , E x t . 6267. Banks and others are encouraged to use the follo w in g to ll-fr e e incoming WATS numbers in contacting th is Bank: 1 -800-492-4403 (in tra s ta te ) and 1 -8 0 0 -52 7 -4 97 0 (in te rs ta te ). For c a lls placed lo c a lly , please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - I f you have a n y questions c o n ce rn in g the am endm ent, please contact R e v ie w E x a m in e r M a r v in McCoy in this B ank's E xam ination D e p a rtm e n t, E x t. 6275. S in c e r e ly y o u r s , R o b e rt H . B oy k in F ir s t V i c e P re s id e n t E nclosure BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM AMENDMENT TO REGULATION H f Effective O c to b e r 31, 1977, Section 208.8 is a m e n d e d by reserving p a ra g r a p h s (g), (h), a n d (i), a n d ad d in g a new p a ra g r a p h (j) as follows: S E C T I O N 208.8 — B A N K I N G P R A C T I C E S (g) [R eserved] (h) [R eserved] (i) [R eserved] (j) State m em ber banks, and subsidiaries, de partments, and divisions thereof, w hich are m u nicipal securities dealers. (1) F o r pu rp o ses o f this p a ra g r a p h , th e term s herein h a v e th e m e an ing s given th e m in section 3(a) o f th e Securities E x c h a n g e A c t o f 1934 (15 U.S.C . §78c(a)) a n d the rules o f th e M u n icip al Securities R u le m a k in g B oard. T h e te r m A ct shall m e a n th e Securities E x c h an g e A c t o f 1934 (15 U.S.C. § 78 a e t seq.). (2) O n an d afte r O c to b e r 31, 1977, a State m e m b e r b a n k o f th e F e d e ra l R eserv e System, or a subsidiary o r a d e p a r t m e n t o r a division thereof, th a t is a m u n ic ip a l securities d ealer shall n o t p e r m it a p e rso n to be associated w ith it as a m unicipa l securities p rincipal o r m u nicip al securities r e p r e sentative unless it has filed w ith th e B o ard a n original a n d tw o copies o f F o r m M S D -4 , “ U n i f o r m A p p lic a tio n fo r M u n icip al Securities P rin ci pal o r M u n ic ip al Securities R e p re sen tativ e A sso ciated w ith a B a n k M u n ic ip al Securities D e a le r,” c o m p le te d in a cc o rd a n c e w ith the instruc tio ns co n ta in e d the rein, fo r th a t person. F o r m M S D -4 is p rescribed by the B o a rd fo r pu rp o se s o f p a ra g r a p h (b) o f M un icip al Securities R u le m a k in g B o ard R u le G -7, “In f o rm a tio n C o n c e rn in g A ssociated P erso n s.” (3) W h e n e v e r a m u n ic ip a l securities d ealer r e ceives a s tate m e n t p u r s u a n t to p a r a g r a p h (c) of M u n icip a l Securities R u le m a k in g B o a rd R u le G-7, “ I n f o rm a tio n C o n c e rn in g A sso ciated P erso n s,” f r o m a p erso n fo r w h o m it has filed a F o r m M SD 4 w ith th e B o a rd p u r s u a n t to s u b p a ra g ra p h (2) of this p a ra g r a p h , such d ea le r shall, w ithin ten days th e re afte r, file th ree copies o f th a t sta te m e n t w ith th e B o a rd a c c o m p a n ie d by an original a n d tw o copies o f a tran sm itta l letter w h ich includes th e n a m e o f th e dealer an d a re fe re n ce to th e m a te rial tr a n sm itte d identifiying th e p erso n involved a n d is signed by a m u n icip a l securities principal asso ciated w ith th e dealer. (4) W ith in 30 days after the te rm in a tio n o f th e association o f a m u n icip a l securities p rin c ip al o r m un icip a l securities re p re sen ta tiv e w ith a m u n ici pal securities d ealer th a t has filed a F o r m M S D -4 with th e B o a rd fo r th a t perso n p u r s u a n t to sub p a ra g r a p h (2) o f this p a ra g r a p h , such d ealer shall file an original an d tw o copies of a notification of te rm in atio n with th e B o a rd o n F o r m M S D -5, “ U n ifo r m T e rm in a tio n N o tic e fo r M u n ic ip a l Se curities P rincipal o r M un icip a l Securities R e p r e sentative A sso ciated w ith a B a n k M u n icip al Securities D e a le r,” c om p le te d in ac c o rd a n c e w ith instructions co n ta in e d therein. t F o r this Regulation to be complete as amended effective October 31, 1977, retain: 1) Printed Regulation pamphlet as amended effective March 18, 1969; 2) Amendments to §208.10(b) and (c) effective December 21, 1973; 3) Amendments adding a new §208.8 and renumbering succeeding section effective March 2, 1974; 4) Amendment effective September 16, 1974; 5) Amendment effective September 22, 1974; 6) Amendment effective October 17, 1975; 7) Amendment effective April 13, 1977; and 8) This slip sheet. (5) A m unicipal securities d ealer th a t files a F o r m M S D -4, F o r m M S D -5, o r s ta te m e n t with th e B o a rd u n d e r this p a r a g r a p h shall retain a copy o f each such F o r m M S D -4 , F o r m M S D -5 , o r sta te m e n t until at least th ree y ears a fter th e te r m in atio n o f th e e m p lo y m e n t o r o th e r association w ith such d ealer o f th e m u n icip al securities p rin cipal o r m u n ic ip a l securities rep resen tativ e to w h o m th e fo rm o r s ta te m e n t relates. (6) T h e d ate th a t th e B o ard receives a F o rm M S D -4, F o r m M S D -5, o r s tate m e n t filed with th e B o a rd u n d e r this p a ra g r a p h shall be th e date of filing. Such a F o r m M S D -4 , F o r m M S D -5 , o r s ta te m e n t w h ich is n o t p re p a r e d a n d executed in a c c o rd an c e w ith th e applicable re q u ire m e n ts m a y be re tu rn e d as u n a cc ep tab le fo r filing. A c c e p ta n c e f o r filing shall n o t co n stitu te an y finding th a t a F o r m M S D -4 , F o r m M S D -5, o r state m e n t h as been co m p leted in a c c o rd a n c e w ith th e applicable r e q u ire m en ts o r th a t any in fo rm a tio n re p o rte d the rein is true, cu rren t, com plete, o r n o t m is leading. E v e ry F o r m M S D -4, F o r m M S D -5 , o r s ta tem en t filed w ith th e B o ard u n d e r this p a r a g ra p h shall constitute a filing with th e Securities a n d E x c h an g e C o m m issio n f o r pu rp o ses o f sec tion 17(c)(1) o f th e A c t (15 U .S.C . §78q(c)(l)) an d a “ re p o r t,” “ a pp lica tio n ,” o r “ d o c u m e n t” w ithin th e m e a n in g o f section 32(a) o f th e A c t (15 U.S.C. §78ff(a)).
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