Summary
Proprietary accounts are accounts maintained by a business organization in the name of an individual or organization, allowing them to obtain goods, services, or other things of value on credit.
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Regulation Best Interest applies to account recommendations, including those to open brokerage accounts or transfer assets.
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Disclosure obligations must be met prior to or at the time of the recommendation
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, and firms must establish policies and procedures to ensure compliance with Regulation Best Interest.
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According to
Summary
Proprietary Accounts are securities investment or trading accounts held in the name of an employee or any of their family members, or of which they have beneficial ownership. They are not accounts that the firm serves as investment adviser, and they are not accounts that the employee or their family members have any direct or indirect ownership interests. Examples of a proprietary account include a personal investment or trading account in which an Employee or a Connected Person of the Employee maintains a beneficial interest, an investment or trading account over which an Employee exercises control, or a proprietary investment or trading account maintained for the Firm or its Employees.
Proprietary Account Definition: 218 Samples | Law Insider
lawinsider.com
Summary
Topics:
Retail Customer: Q: Retail customer is defined as “a natural person, or the legal representative of such natural person, who: (A) receives a recommendation of any securities transaction or investment strategy involving securities from a broker-dealer; and (B) uses the recommendation primarily for personal, family, or household purposes.” What does it mean to “use” ...
Recommendation: Q: What account recommendations are covered by Regulation Best Interest? A: Regulation Best Interestexpressly applies to account recommendations including recommendations of securities account types generally (e.g., to open an IRA or other brokerage account, or an advisory account), as well as recommendations to roll over or transfer assets from on...
Disclosure Obligation: Q: I am an associated person of a broker-dealer; are there circumstances where I can provide oral disclosures, or provide written disclosures aftera recommendation is made, without violating the obligation under Regulation Best Interest to provide written disclosures “prior to or at the time of the recommendation”? A: Only in limited circumstances....
Care Obligation: Q: For purposes of the Care Obligation under Regulation Best Interest, what constitutes a “series of transactions” and whether a particular transaction is part of a “series of transactions”? A:A “series” of recommended transactions is an established term under the federal securities laws and SRO rules that is evaluated in concert with existing guid...
Conflict of Interest Obligation: Q: Are there any other specific conflicts that should be eliminated in addition to: sales contests, sales quotas, bonuses, and non-cash compensation, based on the sales of specific securities or types of security within a limited period of time? A: The Commission emphasized that prohibiting certain incentives does not mean that all other incentives...
Compliance Obligation: Q: Are firms required to build new systems of controls and compliance in order to satisfy the Compliance Obligation? A: The Compliance Obligation requires that firms establish, maintain and enforce, written policies and procedures that are reasonably designed to achieve compliance with Regulation Best Interest. The Commission has stated that these ...
Frequently Asked Questions on Regulation Best Interest - SEC
sec.gov
(l) “Client Account ” means, for the purposes of an Allocation and Allocation Report, any account or subaccount that is not owned or controlled by the Industry Member. (m) "Compliance Threshold"…
6810. Definitions | FINRA.org
finra.org
Proprietary trading, which is also known as "prop trading," occurs when a trading desk at a financial institution, brokerage firm, investment bank, hedge fund or other liquidity source uses the...
Proprietary Trading Definition - Investopedia
investopedia.com
On Feb. 15, 2023, the Securities and Exchange Commission (Commission) proposed a new rule for registered investment advisers that would replace Rule 206 (4)-2 (current rule) under the Investment ...
SEC Changes to Custody Rule February 15 2023
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