4d(b) of the CEAct & Regulation 1.20;
Two futures commission merchants requested that they be permitted to deduct bank fees for customer-segregated bank accounts directly from such accounts in which customer funds were held. Bank fees for the maintenance of such accounts are expenses of the futures commission merchant and not of its customers. Section 4d(b) of the Commodity Exchange Act prohibits any person, including any depository, that has received money, securities or property in a segregated account from holding, disposing of or using any such money, securities or property as belonging to the depositing futures commission merchant or any person other than the customers of such futures commission merchant. Based on the Division's determination that the fees in questions were de minimus, that the futures commission merchants in question maintained excess funds in segregation and had residual interests in the funds in segregated accounts greater than such fees, and that the administrative burden upon such futures commission merchants to pay such fees separately from other non-segregated accounts therefore appeared unnecessary, the Division issued two no-actions letters to the respective futures commission merchants with respect to the payment of such fees directly from the customer-segregated bank accounts upon the conditions specified therein.