"Repo Sweeps" ("repo" meaning " repurchase agreement") are for companies that are concerned about the safety of the bank (usually by mandate of the companies/institutions charter and not due to the opinions of the employees or financial staff).Essentially, the funds are just unsecured obligations of the bank, and therefore are paid the highest interest rate offered by the bank to overnight deposit borrowings.
#SWEEP ACCOUNT FULL#
Eurodollar sweeps are legal transfers of funds to the bank's offshore entities, although essentially they are just an accounting technique to allow the banks to have full lending of the funds without the reserve requirements normally required and without having to pay for FDIC insurance (as the sweep is uninsured).The choices for sweep investments are often the following: money funds, and what are known as "Eurodollar Sweeps" or "Repo Sweeps". In this system, the funds are described as being "swept overnight" into an investment vehicle of some kind. In banking, sweep accounts are primarily used as a legal workaround to the prohibition on paying interest on business checking accounts. It has also become part of the arsenal of services offered by credit card companies. Many banks and financial institutions offer a sweep account service for personal customers and small business owners. Sweep accounts are useful in managing a steady cash flow between a cash account used to make scheduled payments, and an investment account where the cash is able to accrue a higher return. FunctionĪ sweep account combines two or more accounts at a bank or a financial institution, moving funds between them in a predetermined manner. 80a-2(a)(35)).A sweep account is an account set up at a bank or other financial institution where the funds are automatically managed between a primary cash account and secondary investment accounts. (e) Sales load has the same meaning as in section 2(a)(35) of the Investment Company Act of 1940 ( 15 U.S.C. (d) Open-end company has the same meaning as in section 5(a)(1) of the Investment Company Act of 1940 ( 15 U.S.C. (vii) Receiving, tabulating, and transmitting proxies executed by beneficial owners of investment company shares. (vi) Forwarding communications from the investment company to the beneficial owners, including proxies, shareholder reports, dividend and tax notices, and updated prospectuses or (v) Providing sub-accounting services to the investment company for shares held beneficially (iv) Processing dividend payments for the investment company (iii) Providing beneficial owners with account statements showing their purchases, sales, and positions in the investment company (ii) Aggregating and processing purchase and redemption orders for investment company shares (i) Providing transfer agent or sub-transfer agent services for beneficial owners of investment company shares
#SWEEP ACCOUNT SERIES#
(2) For purposes of this definition, charges for the following will not be considered charges against net assets of a class or series of an investment company's securities for sales or sales promotion expenses, for personal service, or for the maintenance of shareholder accounts: (ii) Total charges against net assets of that class or series of the investment company's securities for sales or sales promotion expenses, for personal service, or for the maintenance of shareholder accounts do not exceed 0.25 of 1% of average net assets annually. (i) That class or series is not subject to a sales load or a deferred sales load and (1) No-load, in the context of an investment company or the securities issued by an investment company, means, for securities of the class or series in which a bank effects transactions, that: 80a-1 et seq.) that is regulated as a money market fund pursuant to 17 CFR 270.2a-7. (b) Money market fund means an open-end company registered under the Investment Company Act of 1940 ( 15 U.S.C. (a) Deferred sales load has the same meaning as in 17 CFR 270.6c-10. 78c(a)(4)(B)(v)), the following terms shall have the meaning provided:
§ 247.740 Defined terms relating to the sweep accounts exception from the definition of “broker.”įor purposes of section 3(a)(4)(B)(v) of the Act ( 15 U.S.C.
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