4352. Obtaining a client waiver when an external acceptable securities location is unavailable

Or jump to a Series:

    1. If a Dealer Member holds client securities in a foreign jurisdiction where:

      1. applicable laws and circumstances may restrict the transfer of securities from that jurisdiction, and

      2. the Dealer Member cannot arrange to hold the client’s securities in the jurisdiction at an external acceptable securities location,

    2. the Dealer Member must obtain a waiver from the client.

    3. The client’s waiver in approved form must be obtained for each transaction.

    4. In the waiver, the client must:

      1. consent to the arrangement,

      2. acknowledge the risks associated with holding securities at the specified foreign custodian on behalf of the Dealer Member in the specified country, and

      3. waive any claims it may have against the Dealer Member and hold the Dealer Member harmless if the foreign custodian loses the securities.

    5. On obtaining the waiver, a Dealer Member may hold those client securities at a custodian in the foreign jurisdiction if the Dealer Member has a written custodial agreement with the custodian.

    There is no history log for this rule.

    There is no history log for this rule.