{"data":{"id":"us/17-cfr-401.4","jurisdiction":"us","citation":"17 CFR 401.4","heading":"Exemption for financial institutions engaged in limited government securities dealer activities.","body":"(a) Subject to the requirements of paragraph (b) of this section, a financial institution shall be exempt from the provisions of sections 15C (a), (b), and (d) of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter if its government securities dealer activities are limited to one or more of the following activities:\n(1) Sales or purchases in a fiduciary capacity;\n(2) The sale and subsequent repurchase and the purchase and subsequent resale of government securities pursuant to a repurchase or reverse repurchase agreement; and\n(3) Such other activities as have been exempted by regulation under this subchapter.\n(b)(1) A financial institution that relies on the exemption contained in paragraph (a) of this section is required to comply with:\n(i) The regulations of part 450 of this chapter concerning custodial holdings of government securities for customers; and\n(ii) Section 403.5(d) of this chapter concerning certain repurchase transactions with customers.\n(2) A branch or agency of a foreign bank that relies on the exemption contained in paragraph (a) of this section is in addition required to comply with § 403.5(e) of this chapter.\n(c) For the purposes of this section “financial institution” includes an insured credit union, as defined in 12 U.S.C. 1752(7).","path":["Title 17—Commodity and Securities Exchanges","CHAPTER IV—DEPARTMENT OF THE TREASURY","SUBCHAPTER A—REGULATIONS UNDER SECTION 15C OF THE SECURITIES EXCHANGE ACT OF 1934","PART 401—EXEMPTIONS"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-17.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:31Z","sha256":"a5b25c8dd935b2dadd3e7c365b84026cc3fe8be179b9cd8da769849b685ec017","source_id":"us-cfr","stale":true,"prev":"us/17-cfr-401.3","next":"us/17-cfr-401.5"},"notice":"GroundRules: Original legal text. Not legal advice."}