Iowa Admin. Code r. 191-50.83 - Unsolicited order exemption
(1) Any
unregistered broker-dealer effecting a transaction under an unsolicited order
or offer to buy and claiming an exemption from registration based solely upon
Iowa Code section
502202(6).
shall obtain acknowledgment from the customer on or before the settlement date
of the transaction that the transaction is unsolicited.
(2) The acknowledgment shall take one of the
following forms:
a. A confirmation statement,
as required pursuant to subrule 50.83(1), displaying in bold print on the face
of the statement the words "Unsolicited Order, Notify Immediately if
Otherwise"; or
b. A signed
statement from the customer acknowledging that the order was unsolicited and
containing the name of the customer, the name of the securities involved, the
number of securities involved in the transaction, the purchase price of the
securities, the transaction date, and the total dollar amount, including
commissions paid, of the transaction.
(3) The customer will be presumed to have
acknowledged that the transaction was unsolicited if the customer does not
indicate otherwise on or before the settlement date.
(4) A broker-dealer shall notify the
administrator in writing that it is executing unsolicited orders in a security
when both of the following conditions are met:
a. More than six unsolicited orders or offers
to buy such security are received during any three consecutive business days;
and
b. The broker-dealer is relying
solely upon the exemption provided by Iowa Code section
502202(6)..
This rule is intended to implement Iowa Code section 502.202(6).
Notes
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