DISCRETIONARY ACCOUNTS

3276. Conflicts of interest

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    1. A discretionary account must not hold any publicly traded securities of the Dealer Member or its affiliates. 

    2. responsible person or a Dealer Member must not trade for his or her or the Dealer Member’s own account, or knowingly permit or arrange any associate or affiliate to trade, in reliance upon information relating to trades made or to be made in a discretionary account.

    3. A responsible person or a Dealer Member must not, without the prior written consent of the client, knowingly allow a discretionary account to:

      1. invest in a security or derivative of a security of an issuer if the individuals authorized under subsection 3275(1) to deal with discretionary accounts is an officer or director of the issuer, unless the position with the issuer is disclosed to the client, or

      2. invest in new issues or secondary offerings underwritten by the Dealer Member

    4. A responsible person or a Dealer Member must not allow a discretionary account to provide a guarantee or loan to a responsible person or an associate of a responsible person.

    There is no history log for this rule.

    There is no history log for this rule.