What is 15a6?
What is 15a6?
What is Rule 15a-6? Rule 15a-6 defines permissible activities which foreign broker-dealers may undertake in the United States without becoming subject to the broker-dealer registration requirements of the Securities Exchange Act of 1934 (the “Exchange Act”).
What is a chaperone agreement?
Chaperone agreement means a plan or agreement that describes who will supervise a community protection program client when service provider staff is not present. This plan or agreement is negotiated with other agencies and individuals who support the client, including the client’s legal representative and family.
What is a foreign broker-dealer?
– Under Rule 15a-6(b)(3), foreign broker-dealers are persons who are not resident in the United States, and not offices or branches of, or natural persons associated with, registered broker-dealers whose securities activities, if conducted in the United States, would fall within the definitions of broker or dealer.
What is a foreign associated person?
(2) The term foreign associated person shall mean any natural person domiciled outside the United States who is an associated person, as defined in section 3(a)(18) of the Act, of the foreign broker or dealer, and who participates in the solicitation of a U.S. institutional investor or a major U.S. institutional …
What is a broker-dealer firm?
A broker-dealer (B-D) is a person or firm in the business of buying and selling securities for its own account or on behalf of its customers. The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages because most of them act as both agents and principals.
What is an institutional investor finra?
NASD Rule 2211 defines the term “institutional investor” generally to include registered investment companies, insurance companies, banks, registered broker-dealers, registered investment advisers, certain retirement plans, governmental entities, and individual investors and other entities with at least $50 million in …
What is a Regulation S Security?
Regulation S, which was adopted by the Securities and Exchange Commission (the “SEC”) in 1990,1 provides that offers and sales of securities that occur outside of the United States are exempt from the registration requirements of Section 5 of the Securities Act of 1933 (the “Securities Act”).
What is the FINRA suitability rule?
FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer.
What is rule 15a-6?
Understanding Rule 15a-6. What is Rule 15a-6? Rule 15a-6 defines permissible activities which foreign broker-dealers may undertake in the United States without becoming subject to the broker-dealer registration requirements of the Securities Exchange Act of 1934 (the xchange Act).
Is rule 15a-6 applicable to foreign broker-dealers?
The FAQs affirm, among other things, the SEC’s broad interpretation of Rule 15a-6 confirming the applicability of both the “Seven Firms” and “Nine Firms” to foreign broker-dealers, including those that use unaffiliated US-registered broker-dealers to intermediate transactions in accordance with Rule 15a-6 (a) (3).
What is rule 15a-6 under the Securities Exchange Act of 1934?
Rule 15a-6 under the Securities Exchange Act of 1934 provides conditional exemptions from broker-dealer registration for foreign broker-dealers 1 that engage in certain specified activities involving U.S. investors.
What is intermediation and transactions under Rule 15a-6?
Intermediation and Transactions. As previously discussed, Rule 15a-6 permits a foreign broker-dealer to contact major US institutional investors without the participation of an associated person of a registered broker-dealer in any such contacts. [10] In each case, any resulting transactions must be effected through an intermediary US-registered…
