02-029 C.M.R. ch. 129, § - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29)

  1. § 029-129-1 - Purpose
  2. § 029-129-2 - Definitions
  3. § 029-129-3 - General authorization for third party brokerage arrangements
  4. § 029-129-4 - Provisions applicable to financial institutions
  5. § 029-129-5 - Third party broker-dealer agreement
  6. § 029-129-6 - Disclosures, advertising and physical setting
  7. § 029-129-7 - Broker-dealer unethical practice defined
  8. § 029-129-8 - Third party broker-dealer failure to supervise defined
  9. § 029-129-9 - Federal and state rules and regulations

HISTORICAL SUMMARY:

On June 1, 1994, the Bureau of Financial Institutions ("the Bureau") issued Regulation 29, Securities Activities in Financial Institutions, and the Office of Securities ("the Office") issued Rule 506, Broker-Dealers Transacting Business on the Premises of Financial Institutions. Since that date, there have been a number of changes in both state and federal law regarding securities activities by financial institutions. Federal legislation, the Gramm-Leach-Bliley Act of 1999 ("GLB"), repealed the long-standing prohibitions in federal banking law on mixing banking and securities activities. GLB also removed provisions of federal law that exempted financial institutions from broker-dealer registration and from many broker-dealer regulations. One of the exemptions that GLB did retain was for third party broker-dealer networking arrangements that allow financial institutions to enter into agreements with registered broker-dealers to offer securities transactions to customers of the financial institution and pay compensation to the financial institution without a requirement that the financial institution register as a broker-dealer. In 2000, the Revised Maine Securities Act was amended to incorporate some of the broker-dealer registration exemptions of GLB, including the exemption for third party broker-dealer networking arrangements. This exemption remains in force under the Maine Uniform Securities Act ("the Act"), effective on December 31, 2005.

Notes

02-029 C.M.R. ch. 129, §
EFFECTIVE DATE:
June 1, 1994 - under 02-029, Bureau of Banking, Securities Division
EFFECTIVE DATE (ELECTRONIC CONVERSION): May 7, 1996
NON-SUBSTANTIVE CORRECTIONS:
October 22, 2001 - to reflect creation of new and separate Office of Securities, 02-032, mandated by P.L. 2001 c.182
REPEALED AND REPLACED:
January 18, 2003 - filing 2003-15
AMENDED:
December 31, 2005 - filing 2005-525
NON-SUBSTANTIVE CORRECTIONS:
October 22, 2001 - to reflect creation of new and separate Office of Securities, 02-032, mandated by P.L. 2001 c.182
REPEALED AND REPLACED:
January 18, 2003 - filing 2003-16
AMENDED:
December 31, 2005 - filing 2005-524

STATUTORY AUTHORITY: 9-B M.R.S.A. §§111 and 241 ; 32 M.R.S.A. §16605

Chapter 129 is a Joint Rule with 02-032 Ch. 506

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