Fed Seconds SEC Vote for Broker Exceptions For Banks

The U.S. Federal Reserve gave its nod to a regulation allowing banks to continue selling some securities products and services without having to register as brokers with the Securities and Exchange Commission (SEC).

Federal banking and securities regulators were required to cooperate to issue a single set of rules to deal with a matter left open after passage of the landmark 1999 bank reform law called the Gramm-Leach-Bliley Act, according to Reuters.

The Fed board of governors voted in favor of the interagency regulation on Monday, which was approved by the SEC last Wednesday.