Rev. Rul. 65-36

These provisions set forth a recordkeeping requirement for nominees and apply to a member or member organization of a national securities exchange or association registered with the Securities and Exchange Commission only when such member or member organization is acting in the capacity of nominee. Under this requirement, every nominee must maintain records sufficient to identify the actual owner and to establish that such owner is a United States person eligible to execute a certificate of American ownership under section 4918(a) of the Internal Revenue Code of 1954.

However, a member or a member organization will satisfy this recordkeeping requirement if it has in its records an individual certificate, Form 3625, Certificate of American Ownership, or a blanket certificate, Form 3650, Blanket Certificate of American Ownership, executed by such owner with respect to the stock or debt obligation transferred or with respect to the account through which the transfer is accomplished, unless such member or member organization has actual knowledge that the certificate is false in any material respect.

The recordkeeping requirements which apply to a member or member organization, when acting as a broker, are contained in paragraph (c)(2) of section 147.8-4 of the Temporary Regulations, Treasury Decision 6760, C.B. 1964-2, 926, as supplemented by Revenue Procedure 65-6, page 733, this Bulletin.

¹ Based on Technical Information Release 680, dated Jan. 22, 1965.