Section R339-11-3 - Discount Brokerage ServicesAn industrial loan corporation may enter into a contractual arrangement with unrelated discount brokers where the broker executes securities transactions for industrial loan corporation customers and the industrial loan corporation shares the commissions generated by the transaction. This service is restricted as outlined below:
(1) The industrial loan corporation clearly acts solely at the customer's direction;(2) The transactions are for the account of the customer and not the account of the industrial loan corporation;(3) The transactions are without recourse;(4) The industrial loan corporation makes no warranty as to the performance or quality of any security;(5) The industrial loan corporation does not advise customers to make any particular investment;(6) The industrial loan corporation's promotional material clearly explains the industrial loan corporation's limited role in the service; and(7) The industrial loan corporation's promotional material clearly explains that the transactions are not federally insured.Utah Admin. Code R339-11-3