Table of Contents - Practising Law Institute

BROKER-DEALER REGULATION
§ 20:3.1 Investment Discretion .......................................... 20-8
§ 20:3.2 Brokerage Commissions: Agency and Principal
Transactions.......................................................... 20-9
[A] Principal Transactions and the 2001
Guidance............................................................... 20-9
[B] Over-the-Counter Agency Transactions .............. 20-11
[C] Transactions in Futures ...................................... 20-11
[D]
Primary Offerings; Selling Concessions and
FINRA Rule 5141 ............................................... 20-12
§ 20:3.3 Brokerage and Research Services......................... 20-13
[A] Generally ............................................................ 20-13
[B] The Eligibility Finding ........................................ 20-15
[B][1]
Research and Publications; the Expression of
Reasoning and Knowledge ............................... 20-15
[B][2] Brokerage ......................................................... 20-17
[C] The Use Finding................................................. 20-18
[D] The Reasonableness Finding............................... 20-19
[E]
Examples of Services Within and Outside
the Safe Harbor................................................... 20-19
[F] Mixed-Use Items; Proxy Voting Services ............ 20-24
§ 20:3.4 The “Provided By” and “Effected” Conditions;
Step-Out Transactions ........................................ 20-26
[A] Generally ............................................................ 20-26
[B] Multiple Brokers: Commission Sharing and
Step-Out Transactions ........................................ 20-27
[B][1] Commission-Sharing Arrangements................ 20-27
[B][2]
The Goldman Sachs and Capital Institutional
No-Action Letters ............................................ 20-28
[B][3] Step-Out Transactions ..................................... 20-30
§ 20:4 The Investment Adviser’s Obligations and
Potential Liabilities ..................................................... 20-31
§ 20:4.1 Generally............................................................. 20-31
§ 20:4.2 Related Liability Theories ................................... 20-32
[A] The Investment Advisers Act ............................. 20-32
[A][1] Section 206...................................................... 20-32
[A][2] Section 207...................................................... 20-34
[B] The Exchange Act............................................... 20-35
[C] The Securities Act............................................... 20-35
§ 20:4.3 Disclosure Requirements .................................... 20-35
§ 20:4.4 Compliance Procedures and
Supervisory Obligations ...................................... 20-38
§ 20:5 The Broker-Dealer’s Obligations and
Potential Liabilities ..................................................... 20-39
§ 20:5.1 Aiding and Abetting the Adviser’s Breach of
Fiduciary Duty .................................................... 20-39
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