Source: https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=sg17.4.242_1406.sg4&rgn=div7
Timestamp: 2020-02-18 05:09:14
Document Index: 617733900

Matched Legal Cases: ['art 242', '§242', '§242', '§230', '§230', '§242', '§240', '§240', '§242', '§240', '§242', '§242']

Title 17 → Chapter II → Part 242 → Subject Group
Source: 68 FR 9492, February 27, 2003, unless otherwise noted.
§242.500 Definitions.
For purposes of Regulation AC (§§242.500 through 242.505 of this chapter) the term:
(1) An associated person:
(i) If the associated person has no officers (or persons performing similar functions) or employees in common with the broker or dealer who can influence the activities of research analysts or the content of research reports; and
(ii) If the broker or dealer maintains and enforces written policies and procedures reasonably designed to prevent the broker or dealer, any controlling persons, officers (or persons performing similar functions), and employees of the broker or dealer from influencing the activities of research analysts and the content of research reports prepared by the associated person.
(2) An associated person who is an investment adviser:
(i) Not registered with the Commission as an investment adviser because of the prohibition of section 203A of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3a); and
(ii) Not registered or required to be registered with the Commission as a broker or dealer.
Note to definition of covered person: An associated person of a broker or dealer who is not a covered person continues to be subject to the federal securities laws, including the anti-fraud provisions of the federal securities laws.
(1) With respect to a broker or dealer, any research analyst not employed by that broker or dealer or any associated person of that broker or dealer; and
(2) With respect to a covered person of a broker or dealer, any research analyst not employed by that covered person, by the broker or dealer with whom that covered person is associated, or by any other associated person of the broker or dealer with whom that covered person is associated.
United States has the meaning contained in §230.902(l) of this chapter.
U.S. person has the meaning contained in §230.902(k) of this chapter.
§242.502 Certifications in connection with public appearances.
(a) If a broker or dealer publishes, circulates, or provides a research report prepared by a research analyst employed by the broker or dealer or covered person to a U.S. person in the United States, the broker or dealer must make a record within 30 days after any calendar quarter in which the research analyst made a public appearance that contains the following:
(1) A statement by the research analyst attesting that the views expressed by the research analyst in all public appearances during the calendar quarter accurately reflected the research analyst's personal views at that time about any and all of the subject securities or issuers; and
(2) A statement by the research analyst attesting that no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the research analyst in such public appearances.
(b) If the broker or dealer does not obtain a statement by the research analyst in accordance with paragraph (a) of this section:
(1) The broker or dealer shall promptly notify in writing its examining authority, designated pursuant to section 17(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(d)) and §240.17d-2 of this chapter, that the research analyst did not provide the certifications specified in paragraph (a) of this section; and
(2) For 120 days following notification pursuant to paragraph (b)(1) of this section, the broker or dealer shall disclose in any research report prepared by the research analyst and published, circulated, or provided to a U.S. person in the United States that the research analyst did not provide the certifications specified in paragraph (a) of this section.
(c) In the case of a research analyst who is employed outside the United States by a foreign person located outside the United States, this section shall only apply to a public appearance while the research analyst is physically present in the United States.
(d) A broker or dealer shall preserve the records specified in paragraphs (a) and (b) of this section in accordance with §240.17a-4 of this chapter and for a period of not less than 3 years, the first 2 years in an accessible place.
§242.503 Certain foreign research reports.
A foreign person, located outside the United States and not associated with a registered broker or dealer, who prepares a research report concerning a foreign security and provides it to a U.S. person in the United States in accordance with the provisions of §240.15a-6(a)(2) of this chapter shall be exempt from the requirements of this regulation.
§242.504 Notification to associated persons.
§242.505 Exclusion for news media.
No provision of this Regulation AC shall apply to any person who:
(a) Is the publisher of any bona fide newspaper, news magazine or business or financial publication of general and regular circulation; and
(b) Is not registered or required to be registered with the Commission as a broker or dealer or investment adviser.