Minnesota Administrative Rules

2876.5021 BROKER-DEALER CONDUCT.

Subpart 1.

Fair dealing.

Every broker-dealer and agent has the fundamental responsibility for fair dealing in all of their relationships with customers and others and must comply with NASD IM-2310-2.

Subp. 2.

Suitability.

In making recommendations to a customer, a broker-dealer must comply with NASD Conduct Rule 2310.

Subp. 3.

Supervision.

Every broker-dealer must supervise the activities of its registered agents and registered principals in compliance with NASD Conduct Rules 3010 and 3012.

Subp. 4.

Written notification.

At or before completion of each transaction with a customer, a broker-dealer must give or send to the customer a written notification that complies with Code of Federal Regulations, title 17, section 240.10b-10.

Subp. 5.

Waiver.

Upon written application, the administrator may exempt from subpart 3, on specified terms and conditions, any broker-dealer that is neither registered with the United States Securities and Exchange Commission nor a member of a self-regulatory organization if the administrator finds that it is not necessary in the public interest or for the protection of investors to subject the broker-dealer to the requirements in subpart 3.

Statutory Authority:

MS s 45.023; 80A.82

History:

34 SR 593

Published Electronically:

November 23, 2009