Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69W - Securities › Chapter 69W-600 - REGISTRATION OF DEALERS, INVESTMENT ADVISERS, ASSOCIATED PERSONS › Section 69W-600.013 - Prohibited Business Practices for Dealers and Their Associated Persons

Current through Reg. 50, No. 138; July 16, 2024
(1) The following are deemed violations by a
				dealer under Section 517.161(1)(a),
				F.S., without limiting that term to the practices specified herein:
(a) Extending, arranging for, or
				participating in arranging for credit to a customer in violation of Regulation
				T, Credit by Brokers and Dealers, (12 C.F.R. §§
											220.1
				through 220.12,
				220.101,
				220.103,
				220.105,
				220.108,
				220.110,
				220.111,
				220.113,
				220.117,
				220.118,
				220.119,
				220.121,
				220.122,
				220.123,
				220.124,
				220.127,
				220.128,
				220.131 and
				220.132) and
				12 C.F.R. §
											221.125 of Regulation U. The foregoing rules
				are incorporated by reference in Rule
				69W-200.002, F.A.C.
(b) Executing any transaction in a margin
				account without obtaining from its customer a written margin agreement prior to
				settlement date for the initial transaction in the account.
(c) Failing to segregate customers' free
				securities or securities in safekeeping.
(d) Hypothecating a customer's securities in
				violation of SEC Rule 8c-1, (17 C.F.R. §
											240.8c-1), which
				is incorporated by reference in Rule 69W-200.002, F.A.C.
(e) Failing to execute a customer's
				order.
(f) Executing orders for the
				purchase by a customer of securities not registered under Section
				517.081 or
				517.082, F.S., unless the
				securities are exempted under Section
				517.051, F.S., or the
				transaction is exempted under Section
				517.061, F.S.
(g) Representing itself as a financial or
				investment planner, consultant, or adviser, when the representation does not
				fairly describe the nature of the services offered, the qualifications of the
				person offering the services, and the method of compensation for the
				services.
(h) With respect to any
				customer, transaction or business in this state, violating any of the
				following:
1. Financial Industry Regulatory
				Authority (FINRA) rules contained in the Rule 2000 Series (Duties and
				Conflicts), Rule 3000 Series (Supervision and Responsibilities Relating to
				Associated Persons), Rule 4000 Series (Financial and Operational Rules), Rule
				5000 Series (Securities Offering and Trading Standards and Practices), Rule
				6000 Series (Quotation and Transaction Reporting Facilities), Rule 7000 Series
				(Clearing, Transaction and Order Data Requirements, and Facility Charges), or
				Rule 11000 Series (Uniform Practice Code). The foregoing rules are incorporated
				by reference in Rule 69W-200.002, F.A.C.
2. For members of the New York Stock
				Exchange, Rule 412 or 435 of the New York Stock Exchange, which are
				incorporated by reference in Rule 69W-200.002, F.A.C.
3. Section 2, 3, 4, 5 or 6 of the Securities
				Act of 1933, (15 U.S.C.A.
				§§
												77b,
				77c,
				77d,
				77e or
				77f), or SEC Rules 134, 134a,
				135a, 144, 144A, 156, 419, 481 or 482, (17 C.F.R. §§
												230.134,
				230.134a,
				230.135a,
				230.144,
				230.144A,
				230.156,
				230.419,
				230.481 or
				230.482), which are incorporated
				by reference in Rule 69W-200.002, F.A.C.
4. Section 15(b)(4)(E) of the Securities
				Exchange Act of 1934 (15
				U.S.C. §
												78o(b)(4)(E))
				or Regulation SHO (17 C.F.R.
				§§
												242.200-242.203), which are incorporated
				by reference in Rule 69W-200.002, F.A.C.
5. Section 15B of the Securities Exchange Act
				of 1934 (15 U.S.C. §
												78o-4), or the following rules of the
				Municipal Securities Rulemaking Board (MSRB): MSRB Definitional Rules D-1 to
				D-15 and General Rules G-1 to G-48. The foregoing are incorporated by reference
				in Rule 69W-200.002, F.A.C.
6.
				Section 248.30 of Regulation S-P (17 C.F.R. 248.30),
				which is incorporated by reference in Rule 69W-200.002, F.A.C.
7. Section 240.15l-1 of Regulation Best
				Interest (17 C.F.R. §
												240.15l-1), which is incorporated by
				reference in Rule 69W-200.002, F.A.C.
(i) Failing to furnish to a customer
				purchasing securities in an offering, not later than the date of confirmation
				of the transaction, either a final prospectus or a preliminary prospectus and
				an additional document, which together include all information set forth in the
				final prospectus, where required.
(j) Introducing customer transactions on a
				"fully disclosed" basis to another dealer that is not registered under Chapter
				517, F.S., unless the customer is a person described in Section
				517.061(7),
				F.S.
(k) Recommending to a customer
				that the customer engage the services of an investment adviser that is not
				registered or exempt from registration under Chapter 517, F.S., unless the
				customer is a person described in Section
				517.061(7),
				F.S.
(l) Recommending that a
				customer engage the services of an investment adviser or federal covered
				adviser where the dealer receives a fee or remuneration (other than directed
				business) from the investment adviser or federal covered adviser, unless the
				dealer is registered with the Office as an investment adviser pursuant to Rule
				69W-600.0016, F.A.C. or
				notice-filed pursuant to Rule
				69W-600.0017, F.A.C.
(m) Selling or offering for sale any security
				in a transaction exempt from registration pursuant to Section 517.061(17)(a)1.,
				F.S., where the issuer of such securities has not filed with the SEC within the
				specified period of time all reports required by Sections 13 or 15D of the
				Securities Exchange Act of 1934, (15 U.S.C. §§
											78m,
				78o-6), which are incorporated by
				reference in Rule 69W-200.002, F.A.C.
(n) Giving false or otherwise misleading
				customer information to any financial institution or regulatory
				agency.
(o) Any unethical practice
				pursuant to Rule 69W-600.0133, F.A.C.
(p) Failing to deliver a current Form CRS to
				any retail investor in violation of SEC Rule 17a-14 (17 C.F.R. §
											240.17a-14), which is incorporated by
				reference in Rule 69W-200.002,
				F.A.C.