Cal. Code Regs. Tit. 10, § 260.216.16 - Dual Employment or Affiliation

Current through Register 2022 Notice Reg. No. 16, April 25, 2022

It shall constitute a "fraudulent, deceptive or manipulative act or practice," as used in subsection (b) of Section 25216 of the Code, for any agent, officer, director, partner, managing employee or controlling person of a broker-dealer to become concurrently associated with another broker-dealer or with an issuer as an agent, officer, director, partner, managing employee or controlling person unless prior to establishing such concurrent affiliation (i) such person gives written notice to both affiliates regarding such dual relationship, (ii) both affiliates consent to such concurrent affiliation, (iii) both affiliates establish appropriate procedures designed to correct any conflict of interest arising out of such relationship and to guard against violations of Sections 260.216, 260.216.3,260.216.4, 260.216.7 or 260.218.4 of these rules or Rules 15c1-2 ( 17 CFR 240.15 c1-2), 15c1-5 ( 17 CFR 240.15c1 - 5 ), 15c1-6 ( 17 CFR 240.15c1 - 6 ),or 15c1-8 ( 17 CFR 240.15 c1-8), under the Securities Exchange Act of 1934 ( 15 USC 78 a et seq.) and (iv) if both affiliates are broker-dealers and employ the same person as an agent (as defined in Section 25003 of the Code), both affiliates agree to be liable to customers of either affiliate for all acts of the agent in the employment of either affiliate. For the purposes of this section, "controlling person" means any person owning or controlling 10% or more of the voting securities of a broker-dealer or the parent of a broker-dealer and any partner of a broker-dealer.

Notes

Cal. Code Regs. Tit. 10, § 260.216.16

Note: Authority cited: Sections 25216(b) and 25610, Corporations Code. Reference: Section 25216, Corporations Code.

1. New section filed 9-19-73; effective thirtieth day thereafter (Register 73, No. 38).
2. Amendment filed 4-27-84; effective thirtieth day thereafter (Register 84, No. 18).
3. Amendment filed 1-7-88; operative 2-6-88 (Register 88, No. 4).

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.