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Table of Contents
LEGAL DISCLAIMER
RULE NO. 1 - BUSINESS STRUCTURES AND QUALIFICATIONS
1.1 BUSINESS STRUCTURES
1.1.1. Members
1.1.2 Compliance by Approved Persons
1.1.3 Service Arrangements
1.1.4 Employees
1.1.5 Agents
1.1.6 Introducing and Carrying Arrangement
1.1.7 Business Names, Styles, Etc.
1.2 INDIVIDUAL QUALIFICATIONS
1.2.1 Salespersons
1.2.2 Reporting Requirements
RULE NO. 2 - BUSINESS CONDUCT
2.1 GENERAL
2.1.1 Standard of Conduct
2.1.2 Member Responsible
2.1.3 Confidential Information
2.1.4 Conflicts of Interest
2.2 CLIENT ACCOUNTS
2.2.1 "Know-Your-Client"
2.2.2 New Accounts
2.2.3 New Account Approval
2.2.4 Updating Client Information
2.2.5 Relationship Disclosure
(subject to transition period)
2.3 POWER OF ATTORNEY/LIMITED TRADING AUTHORIZATION/DISCRETIONARY TRADING
2.3.1 (a) Prohibition
(b) Exception
2.3.2 Limited Trading Authorization
2.3.3 Designation
2.4 REMUNERATION, COMMISSIONS AND FEES
2.4.1
(a) Payable by Member Only
(b) Payment of Commissions to Unregistered Corporation
(
c) Arrangements Prohibited
2.4.2 Referral Arrangements
2.4.3 Service Fees or Charges
2.4.4 Transaction Fees or Charges
2.5 MINIMUM STANDARDS OF SUPERVISION
2.5.1 Member Responsibilities
2.5.2 Ultimate Designated Person
2.5.3 Chief Compliance Officer
2.5.4 Access to Board
2.5.5. Branch Manager
2.5.6 Currency of Examination
2.5.7 Maintenance of Supervisory Review Documentation
2.5.8 No Delegation
2.6 BORROWING FOR SECURITIES PURCHASES
2.7 ADVERTISING AND SALES COMMUNICATIONS
2.7.1 Definitions
2.7.2 General Restrictions
2.7.3 Review Requirements
2.8 CLIENT COMMUNICATIONS
2.8.1 Definition
2.8.2 General Restrictions
2.8.3 Rates of Return
2.9 INTERNAL CONTROLS
2.10 POLICIES AND PROCEDURES MANUAL
2.11 COMPLAINTS
2.12 TRANSFERS OF ACCOUNT
2.12.1 Definitions
2.12.2 Transfers
RULE NO. 3 - FINANCIAL AND OPERATIONS REQUIREMENTS
3.1 CAPITAL
3.1.1 Minimum Levels
3.1.2 Notice
3.2 CAPITAL AND MARGIN
3.2.1 Client Lending and Margin
3.2.2 Member Capital
3.2.3 Advancing Mutual Fund Redemption Proceeds
3.2.4 Related Member Guarantees
3.2.5 Notice Regarding Accelerated Payment of Long Term Debt
3.3 SEGREGATION OF CLIENT PROPERTY
3.3.1 General
3.3.2 Cash
3.3.3 Securities
3.4 EARLY WARNING
3.4.1 Definitions
3.4.2 (a) Designation
(b) Requirements
(c) Prohibited Transactions
3.4.3 Restrictions
3.4.4 Duration
3.5 FILING REQUIREMENTS
3.5.1 Monthly and Annual
3.5.2 Combined Financial Statements
3.5.3 Members' Auditors
3.5.4 Assessments
3.6 AUDIT REQUIREMENTS
3.6.1 Standards
3.6.2 Scope
3.6.3 Additional Reporting
3.6.4 Systems Review
3.6.5 Retention
3.6.6 Report to Corporation
3.6.7 Reliance
3.6.8 Qualification
RULE NO. 4 - INSURANCE
4.1 Financial Institution Bond
4.2 Notice of Termination
4.3 Termination or Cancellation
4.4 Amounts Required
4.4.1 Minimum
4.4.2 Base Amount
4.5 Provisios
4.6 Qualified Carriers
4.7 Global Financial Institution Bonds
RULE NO. 5 - BOOKS, RECORDS REPORTING
5.1 Requirement for Records
5.2 Storage Medium
5.3 Client Reporting
5.3.1 Delivery of Account Statement
5.3.2 Automatic Payment Plans
5.3.3 Content of Account Statement
5.3.4 Member Business Only
5.4 Trade Confirmation
5.4.1 Delivery of confirmations
5.4.2 Automatic Payment Plans
5.4.3 Content
5.5 Access to Books and Records
5.6 Record Retention
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