Series 66: Broker-Dealers Operating Within Bank Setting

Broker-Dealers Operating Within Bank Setting

Many broker-dealers operate within bank settings. Because this may lead retail customers to assume that banking rules apply to broker-dealers, the NASAA has issued model rules regarding broker-dealers who operate within a bank setting. They include the following:

• • The broker-dealer should offer their services in an area that is separate from the location where retail banking activities are taking place.
• • The broker-dealer’s name needs to be clearly stated where the broker-dealer activity is taking place.
• • The broker-dealer needs to distinguish its services from the retail bank.
• • The broker-dealer must disclose orally and in writ