Annual Report for Persons Registered Pursuant to Regulation U
All FR G-1 filers are required to file the FR G-4, an annual report on their loans secured by margin stock collateral. Lenders report the total amount of credit secured directly or indirectly by margin stock outstanding as of June 30; the amount of credit secured directly or indirectly by margin stock extended during the year; whether the loans involved are purpose or nonpurpose also; and whether the credit is used to fund employee stock option, purchase, or ownership plans. Those lenders funding stock option, purchase, and ownership plans must specify whether the credit was extended pursuant to the special provisions set forth in section 221.4 of Regulation U, which authorizes employers to extend credit to employees and ESOPs with no specified margin.
Purpose: The Federal Reserve uses the data to monitor the amount of credit secured by margin stock extended by nonbank lenders, to administer margin regulations, and to aid in processing the FR G-2 deregistration statement for lenders not directly subject to compliance inspections from the Federal Reserve System.
The Securities Exchange Act of 1934 ('34 Act) authorizes the Board to regulate securities credit issued by banks, brokers and dealers, and other lenders. Until their 1998 revision, the securities credit regulations were distinguished by the type of lender to which they had applied, that is, banks, brokers and dealers, and others. Regulation T had governed credit activities of brokers and dealers since 1934. Regulation U, governing banks, was adopted in 1936. The Federal Reserve adopted Regulation G in 1968 as a companion to Regulation U, to stop unregulated lenders from circumventing the margin requirements of Regulations T and U. The FR G-4 has existed in some form since 1968. Effective April 1, 1998, the National Securities Markets Improvement Act of 1996 repealed section 8(a) of the '34 Act, which distinguished between bank and nonbank lenders with respect to broker-dealers. The amendment eliminated the need for separate regulations, and Regulation G was merged into Regulation U.
All FR G-1 respondents. Reporting is required.
Annually, as of June 30.
Microdata are confidential.
Last Update: January 28, 2015