N.M. Code R. § 12.11.4.16

Current through Register Vol. 35, No. 11, June 11, 2024

Section 12.11.4.16 - PROHIBITED BUSINESS PRACTICES BY AGENTS

The following are deemed to be unethical or dishonest conduct or practices by an agent under Section 58-13C-412 C(13) NMSA 1978 without limiting those terms to the practices specified herein:

A. borrowing money or securities from, or lending money or securities to, a customer;

B. acting as a custodian for money, securities or an executed stock power of a customer;

C. effecting securities transactions with a customer not recorded on the regular books or records of the broker-dealer which the agent represents, unless the transactions are disclosed to, and authorized in writing by, the broker-dealer prior to execution of the transactions;

D. effecting transactions in securities for an account operating under a fictitious name, unless disclosed to, and permitted in writing by, the broker-dealer or issuer which the agent represents;

E. sharing directly or indirectly in profits or losses in the account of any customer without first obtaining written authorization of the customer and the broker-dealer which the agent represents;

F. dividing or otherwise splitting commissions, profits or other compensation receivable in connection with the purchase or sale of securities in this state with any person not so registered as an agent for the same broker-dealer, or for a broker-dealer under direct or indirect common control;

G. using advertising describing or relating to the agent's securities business unless the advertising clearly identifies the name of the agent's employing broker-dealer or issuer;

H. misrepresenting the services of a registered investment adviser on whose behalf the agent is soliciting business or accounts; and

I. engaging in any of the practices specified in Subsections B, C, D, E, F, G, H, O, P, Q, R, T and U of 12.11.4.15 NMAC.

N.M. Code R. § 12.11.4.16

12.11.4.16 NMAC - Rp, 12.11.4.16 NMAC, 1-1-2010