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Finra Rule:GENERAL STANDARDS
USINFO | 2013-12-18 16:08
Contents:
0110. Adoption of Rules
0120. Effective Date
0130. Interpretation
0140. Applicability
0150. Application of Rules to Exempted Securities Except Municipal Securities
0160. Definitions
0170. Delegation, Authority and Access
0180. Application of Rules to Security-Based Swaps
0110. Adoption of Rules
The Rules are adopted pursuant to Article VII, Section 1, of the FINRA By-Laws.
0120. Effective Date
The Rules shall become effective as provided in Article XI, Section 1, of the FINRA By-Laws.
0130. Interpretation
The Rules shall be interpreted in light of the purposes sought to be achieved by the Rules and to further FINRA's regulatory programs.
0140. Applicability
(a) The Rules shall apply to all members and persons associated with a member. Persons associated with a member shall have the same duties and obligations as a member under the Rules.
(b) A member or person associated with a member, who has been expelled, canceled or revoked from membership or from registration, or who has been barred from being associated with all members, shall cease to have any privileges of membership or registration. A member or person associated with a member who has been suspended from membership or registration shall also cease to have any privileges of membership or registration other than those under the Code of Procedure as set forth in the Rule 9000 Series or insurance programs sponsored by FINRA. In neither case shall such a member or person associated with a member be entitled to recover any admission fees, dues, assessments or other charges paid to FINRA.
(c) A member or person associated with a member who has been suspended from membership or from registration shall be considered as a non-member during the period of suspension for purposes of applying the provisions of the Rules which govern dealings between members and non-members. However, such member or person associated with a member shall have all of the obligations imposed by the Rules.
0150. Application of Rules to Exempted Securities Except Municipal Securities
(a) For purposes of this Rule, the terms "exempted securities" and "municipal securities" shall have the meanings specified in Sections 3(a)(12) and 3(a)(29) of the Exchange Act, respectively.
(b) The Rules do not apply to transactions in, and business activities relating to, municipal securities.
(c) Unless otherwise indicated within a particular Rule, the following FINRA and NASD rules are applicable to transactions in, and business activities relating to, exempted securities, except municipal securities, conducted by members and associated persons: FINRA Rules 2010, 2020, 2060, 2111, 2150, 2210, 2212, 2261, 2268, 2269, 2320(g), 3220, 3270, 4120, 4130, 4210, 4311, 4360, 4510 Series, 4530, 5160, 5210, 5220, 5230, 5310, 5340, 8110, 8120, 8210, 8310, 8311, 8312, 8320, 8330 and 9552; NASD Rules IM-2210-2, 2330, IM-2330, 2340, 2430, 2510, 3010, 3040, 3050, 3140.
0160. Definitions
(a) The terms used in the Rules, if defined in the FINRA By-Laws, shall have the meaning as defined in the FINRA By-Laws, unless a term is defined differently in a Rule, or unless the context of the term within a Rule requires a different meaning.
(b) When used in the Rules, unless the context otherwise requires:
(1) “By-Laws”The term “By-Laws” means the By-Laws of the Corporation or the FINRA By-Laws.
(2) “Code of Procedure”The term “Code of Procedure” means the procedural rules contained in the Rule 9000 Series.
(3) “Completion of the Transaction”The term “completion of the transaction” means:
(A) In the case of a customer who purchases a security through or from a member, except as provided in subparagraph (B), the time when such customer pays the member any part of the purchase price, or, if payment is effected by a bookkeeping entry, the time when such bookkeeping entry is made by the member for any part of the purchase price;
(B) In the case of a customer who purchases a security through or from a member and who makes payment therefor prior to the time when payment is requested or notification is given that payment is due, the time when such member delivers, or credits such delivery of, the security to or into the account of such customer;
(C) In the case of a customer who sells a security through or to a member, except as provided in subparagraph (D), if any security is not in the custody of the member at the time of sale, the time when the security is delivered to the member, and if the security is in the custody of the member at the time of sale, the earlier of when the member transfers the security from the account of such customer or the closing date of the transaction;
(D) In the case of a customer who sells a security through or to a member and who delivers such security to such member prior to the time when delivery is requested or notification is given that delivery is due, the time when such member makes payment to or into the account of such customer.
(4) “Customer”The term “customer” shall not include a broker or dealer.
(5) “Exchange Act” or “SEA”The term “Exchange Act” or “SEA” means the Securities Exchange Act of 1934, as amended.
(6) “FINRA”The term “FINRA” means, collectively, FINRA, Inc., FINRA Regulation, Inc. and FINRA Dispute Resolution, Inc.
(7) “Investment Advisers Act”The term “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended.
(8) “Investment Company Act”The term “Investment Company Act” means the Investment Company Act of 1940, as amended.
(9) “Member”The term “member” means any individual, partnership, corporation or other legal entity admitted to membership in FINRA under the provisions of Articles III and IV of the FINRA By-Laws.
(10) “Person”The term “person” shall include any natural person, partnership, corporation, association, or other legal entity.
(11) “SEC”The term “SEC” means the Securities and Exchange Commission.
0110. Adoption of Rules
0120. Effective Date
0130. Interpretation
0140. Applicability
0150. Application of Rules to Exempted Securities Except Municipal Securities
0160. Definitions
0170. Delegation, Authority and Access
0180. Application of Rules to Security-Based Swaps
0110. Adoption of Rules
The Rules are adopted pursuant to Article VII, Section 1, of the FINRA By-Laws.
0120. Effective Date
The Rules shall become effective as provided in Article XI, Section 1, of the FINRA By-Laws.
0130. Interpretation
The Rules shall be interpreted in light of the purposes sought to be achieved by the Rules and to further FINRA's regulatory programs.
Cross Reference–
Resolution under Article XI, Section 1, of the By-Laws: Interpretations and Explanations
Resolution under Article XI, Section 1, of the By-Laws: Interpretations and Explanations
0140. Applicability
(a) The Rules shall apply to all members and persons associated with a member. Persons associated with a member shall have the same duties and obligations as a member under the Rules.
(b) A member or person associated with a member, who has been expelled, canceled or revoked from membership or from registration, or who has been barred from being associated with all members, shall cease to have any privileges of membership or registration. A member or person associated with a member who has been suspended from membership or registration shall also cease to have any privileges of membership or registration other than those under the Code of Procedure as set forth in the Rule 9000 Series or insurance programs sponsored by FINRA. In neither case shall such a member or person associated with a member be entitled to recover any admission fees, dues, assessments or other charges paid to FINRA.
(c) A member or person associated with a member who has been suspended from membership or from registration shall be considered as a non-member during the period of suspension for purposes of applying the provisions of the Rules which govern dealings between members and non-members. However, such member or person associated with a member shall have all of the obligations imposed by the Rules.
Cross Reference–
Rule 8311, Effect of a Suspension, Revocation or Bar
Rule 8311, Effect of a Suspension, Revocation or Bar
0150. Application of Rules to Exempted Securities Except Municipal Securities
(a) For purposes of this Rule, the terms "exempted securities" and "municipal securities" shall have the meanings specified in Sections 3(a)(12) and 3(a)(29) of the Exchange Act, respectively.
(b) The Rules do not apply to transactions in, and business activities relating to, municipal securities.
(c) Unless otherwise indicated within a particular Rule, the following FINRA and NASD rules are applicable to transactions in, and business activities relating to, exempted securities, except municipal securities, conducted by members and associated persons: FINRA Rules 2010, 2020, 2060, 2111, 2150, 2210, 2212, 2261, 2268, 2269, 2320(g), 3220, 3270, 4120, 4130, 4210, 4311, 4360, 4510 Series, 4530, 5160, 5210, 5220, 5230, 5310, 5340, 8110, 8120, 8210, 8310, 8311, 8312, 8320, 8330 and 9552; NASD Rules IM-2210-2, 2330, IM-2330, 2340, 2430, 2510, 3010, 3040, 3050, 3140.
0160. Definitions
(a) The terms used in the Rules, if defined in the FINRA By-Laws, shall have the meaning as defined in the FINRA By-Laws, unless a term is defined differently in a Rule, or unless the context of the term within a Rule requires a different meaning.
(b) When used in the Rules, unless the context otherwise requires:
(1) “By-Laws”The term “By-Laws” means the By-Laws of the Corporation or the FINRA By-Laws.
(2) “Code of Procedure”The term “Code of Procedure” means the procedural rules contained in the Rule 9000 Series.
(3) “Completion of the Transaction”The term “completion of the transaction” means:
(A) In the case of a customer who purchases a security through or from a member, except as provided in subparagraph (B), the time when such customer pays the member any part of the purchase price, or, if payment is effected by a bookkeeping entry, the time when such bookkeeping entry is made by the member for any part of the purchase price;
(B) In the case of a customer who purchases a security through or from a member and who makes payment therefor prior to the time when payment is requested or notification is given that payment is due, the time when such member delivers, or credits such delivery of, the security to or into the account of such customer;
(C) In the case of a customer who sells a security through or to a member, except as provided in subparagraph (D), if any security is not in the custody of the member at the time of sale, the time when the security is delivered to the member, and if the security is in the custody of the member at the time of sale, the earlier of when the member transfers the security from the account of such customer or the closing date of the transaction;
(D) In the case of a customer who sells a security through or to a member and who delivers such security to such member prior to the time when delivery is requested or notification is given that delivery is due, the time when such member makes payment to or into the account of such customer.
(4) “Customer”The term “customer” shall not include a broker or dealer.
(5) “Exchange Act” or “SEA”The term “Exchange Act” or “SEA” means the Securities Exchange Act of 1934, as amended.
(6) “FINRA”The term “FINRA” means, collectively, FINRA, Inc., FINRA Regulation, Inc. and FINRA Dispute Resolution, Inc.
(7) “Investment Advisers Act”The term “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended.
(8) “Investment Company Act”The term “Investment Company Act” means the Investment Company Act of 1940, as amended.
(9) “Member”The term “member” means any individual, partnership, corporation or other legal entity admitted to membership in FINRA under the provisions of Articles III and IV of the FINRA By-Laws.
(10) “Person”The term “person” shall include any natural person, partnership, corporation, association, or other legal entity.
(11) “SEC”The term “SEC” means the Securities and Exchange Commission.
