Section 247.741 - Exemption for banks effecting transactions in money market funds(a) A bank is exempt from the definition of the term "broker" under section 3(a)(4) of the Act (15 U.S.C. 78c(a)(4) ) to the extent that it effects transactions on behalf of a customer in securities issued by a money market fund, provided that:(1) The bank either(i) Provides the customer, directly or indirectly, any other product or service, the provision of which would not, in and of itself, require the bank to register as a broker or dealer under section 15(a) of the Act (15 U.S.C. 78o(a) ) ; or(ii) Effects the transactions on behalf of another bank as part of a program for the investment or reinvestment of deposit funds of, or collected by, the other bank; and(2)(i) The class or series of securities is no-load; or(ii) If the class or series of securities is not no-load(A) The bank or, if applicable, the other bank described in paragraph (a)(1)(B) of this section provides the customer, not later than at the time the customer authorizes the securities transactions, a prospectus for the securities; and(B) The bank and, if applicable, the other bank described in paragraph (a)(1)(B) of this section do not characterize or refer to the class or series of securities as no-load.(b)Definitions. For purposes of this section:(1)Money market fund has the same meaning as in § 247.740(b) .(2)No-load has the same meaning as in § 247.740(c) . 72 FR 56554 , Oct. 3, 2007, as amended at 73 FR 20780 , Apr. 17, 2008