Utah Admin. Code R339-11-3 - Discount Brokerage Services
An industrial loan corporation may enter into a contractual arrangement with unrelated discount brokers where the broker executes securities transactions for industrial loan corporation customers and the industrial loan corporation shares the commissions generated by the transaction. This service is restricted as outlined below:
(1) The industrial loan corporation clearly
acts solely at the customer's direction;
(2) The transactions are for the account of
the customer and not the account of the industrial loan corporation;
(3) The transactions are without
recourse;
(4) The industrial loan
corporation makes no warranty as to the performance or quality of any
security;
(5) The industrial loan
corporation does not advise customers to make any particular
investment;
(6) The industrial loan
corporation's promotional material clearly explains the industrial loan
corporation's limited role in the service; and
(7) The industrial loan corporation's
promotional material clearly explains that the transactions are not federally
insured.
Notes
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