Refer to section 1010.100 of
this chapter for general definitions not noted herein. To the extent
there is a differing definition in section 1010.100 of this chapter,
the definition in this section is what applies to part 1023. Unless
otherwise indicated, for purposes of this part:
(a) Account. For purposes of section
1023.220:
(1) Account means
a formal relationship with a broker-dealer established to effect transactions
in securities, including, but not limited to, the purchase or sale
of securities and securities loaned and borrowed activity, and to
hold securities or other assets for safekeeping or as collateral.
(2) Account does
not include:
(i) An account that the broker-dealer
acquires through any acquisition, merger, purchase of assets, or assumption
of liabilities; or
(ii) An account opened for the purpose of participating in an employee
benefit plan established under the Employee Retirement Income Security
Act of 1974.
(b) Broker-dealer means a person registered or required to be registered as a broker
or dealer with the Commission under the Securities Exchange Act of
1934 (15 U.S.C. 77a et seq.), except persons who register pursuant
to 15 U.S.C. 78o(b)(11).
(c) Commission means, for the purposes of section 1023.220, the United States Securities
and Exchange Commission.
(d) Customer. For purposes of section 1023.220:
(1) Customer means:
(i) A person that opens a new account; and
(ii) An individual who opens a new account
for:
(A) An individual who lacks legal capacity;
or
(B) An entity that
is not a legal person.
(2) Customer does not include:
(i) A financial
institution regulated by a Federal functional regulator or a bank
regulated by a state bank regulator;
(ii) A person described in section 1020.315(b)(2)
through (4) of this chapter; or
(iii) A person that has an existing
account with the broker-dealer, provided the broker-dealer has a reasonable
belief that it knows the true identity of the person.
(e) Financial institution is defined at 31 U.S.C. 5312(a)(2) and (c)(1).
