[Code of Federal Regulations]
[Title 17, Volume 3]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR250.4]

[Page 634-635]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
       CHAPTER II--SECURITIES AND EXCHANGE COMMISSION (CONTINUED)
 
PART 250_GENERAL RULES AND REGULATIONS, PUBLIC UTILITY HOLDING COMPANY 
ACT OF 1935--Table of Contents
 
Sec.  250.4  Exemption of certain brokers, dealers and underwriters.

    (a) General exemption. Subject to the provision of Sec.  250.6, any 
broker, dealer or underwriter, as defined in paragraph (c) of this 
section, shall be exempt from any obligation, duty, or liability imposed 
by the act upon such person as a holding company, solely by reason of 
such person owning, controlling, or holding with power to vote any 
securities of any public utility or holding company which are:

[[Page 635]]

    (1) Not beneficially owned by such persons and are subject to any 
voting instructions which may be given by customers or their assigns; or
    (2) Acquired within 12 months in the ordinary course of business as 
a broker, dealer or underwriter with the bona fide intention of 
effecting distribution of the specific securities so acquired.
    (b) Exemption from section 9(a)(2). Any broker, dealer or 
underwriter, as defined in paragraph (c) of this section shall be exempt 
from section 9(a)(2) of the act (49 Stat. 817; 15 U.S.C. 79i) with 
respect to the acquisition of any securities for the account of 
customers, or in connection with any underwriting entered into with the 
intention of effecting immediate distribution of such securities.
    (c) Definition of broker, dealer or underwriter. As used in this 
section, the terms ``broker'' or ``dealer'' have the meaning set forth 
in sections 3(a)(4) and (a)(5) of the Securities Exchange Act of 1934 
(48 Stat. 882; 15 U.S.C. 78c), and the term ``underwriter'' means any 
underwriter as defined in section 2(11) of the Securities Act of 1933 
(48 Stat. 74, 905; 15 U.S.C. 77b) who is regularly engaged in business 
as such and is not a registered holding company.