Cal. Code Regs. Tit. 10, § 260.216.5 - Churning

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

The phrase "manipulative, deceptive, or other fraudulent scheme, device, or contrivance," as used in subdivision (a) of Section 25216 of the Code, is hereby defined to include any act of any broker-dealer or agent designed to effect with or for any customer's account with respect to which such broker-dealer or its agent or employee is vested with any discretionary power, or with respect to which such person is able by reason of the customer's trust and confidence to influence the volume and frequency of the trades, any transactions of purchase or sale which are excessive in size or frequency in view of the financial resources and character of such account.

Notes

Cal. Code Regs. Tit. 10, § 260.216.5

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

1. Editorial correction filed 11-9-82 (Register 82, No. 46).

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