For immediate release

The Federal Reserve Board today announced adoption of final standard practice rules regarding transactions in government securities by depository institutions. The final rule is effective July 1, 1997. Similar rules are being adopted by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The agencies are adopting the final rules to provide consistent treatment for customers of both bank and nonbank dealers and brokers in government securities. The rules are substantively identical to the National Association of Securities Dealers (NASD) Business Conduct and Suitability Rules and the NASD Suitability Interpretation that apply to nonbank brokers and dealers in government securities. The interagency notice is attached.

Summary only | Summary and final rule (90 KB PDF)

1997 Banking and consumer regulatory policy