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SEC Rule 15a-6: Difference between revisions
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<blockquote>"Flnally, paragraph (a)(3)(iii) of the Rule requires the use of a registered broker-dealer as an intermediary in effecting trades between U.S. institutional investors or major U.S. institutional investors and the foreign broker-dealer as a condition for this exemption. Paragraph (a)(3)(iii)(A) first requires that transactions with these investors be effected through the registered broker-dealer. This means that the registered broker-dealer must handle all aspects of these transactions except the negotiation of their terms, which may occur between the investors and the foreign broker-dealer (through its foreign associated persons).</blockquote> | <blockquote>"Flnally, paragraph (a)(3)(iii) of the Rule requires the use of a registered broker-dealer as an intermediary in effecting trades between U.S. institutional investors or major U.S. institutional investors and the foreign broker-dealer as a condition for this exemption. Paragraph (a)(3)(iii)(A) first requires that transactions with these investors be effected through the registered broker-dealer. This means that the registered broker-dealer must handle all aspects of these transactions except the negotiation of their terms, which may occur between the investors and the foreign broker-dealer (through its foreign associated persons).</blockquote> | ||
<blockquote>Paragraph (a)(3)(iii)(A) requires the [[registered broker-dealer]] through which transactions with these investors are effected to be responsible for carrying on specified functions, so as to make the performance of these functions subject to direct Commission oversight. The [[registered broker-dealer]] must issue all required confirmations and account statements to the investors. These documents are significant points of contact between the investor and the [[broker-dealer]], and they provide important information. Also, as between the [[foreign broker-dealer]] and the [[registered broker-dealer]], the latter is required to extend or arrange for the extension of any credit to these investors in connection with the purchase of securities. In addition, the [[registered broker-dealer]] is responsible for maintaining required books and records relating to the transactions conducted under paragraph (a)(3) of the Rule, including those required by Rules 17a-3 and 17a-4, | |||
which facililates Commission supervision and investigation of these transactions.</blockquote> | |||
::- [[Media:FederalRegister15a6.pdf|Federal Register Guidance]] | ::- [[Media:FederalRegister15a6.pdf|Federal Register Guidance]] | ||