(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
USC 78c(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 section 218.760(h)(4).
