Private Securities Transactions

  1. 9. Retirement Plans
  2. 10. Brokerage Office Procedure
  3. 11. Recommendations Professional Conduct And Taxation
  1. 11.1 Introduction
  2. 11.2 Professional Conduct In The Securities Industry
  3. 11.3 Fair Dealings With Customers
  4. 11.4 Recommendations To An Institutional Customer
  5. 11.5 Information Obtained From An Issuer
  6. 11.6 Borrowing And Lending Money
  7. 11.7 Gift Rule
  8. 11.8 Outside Employment
  9. 11.9 Private Securities Transactions
  10. 11.10 Customer Complaints
  11. 11.11 Investor Information

A registered representative may not engage in any private securities transactions without first obtaining the broker dealer’s prior approval. The registered representative must provide the employing firm with all documentation regarding the investment and the proposed transaction. An example of a private securities transaction would be if a representative helped a start-up business raise money through a private placement. If the representative is going to receive compensation, the employing member firm must supervise the transaction as if the firm itself executed the transaction. If a representative sells investment products that the employing member does not conduct business in, without the member’s knowledge, then the representative has committed a violation known as selling away.

Customer Complaints

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