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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