Chaperoning Agreement Definition

[2] Foreign comics that can avail themselves of Rule 15a-6 are not in the United States. Any resident individual or corporation that does not have a public office or branch of (or individuals registered with) the SEC and whose securities activities, when carried out in the United States, would be covered by the definitions of the Exchange Act of “broker” or “trader.” According to these definitions, brokers and traders are individuals who trade on securities on behalf of others or on their own behalf. It should be noted, however, that where the foreign broker has entered into an accompanying agreement with a registered dealer-dealer who meets the requirements of Rule 15a-6 (a) (3), all transactions with the foreign securities dealer reviewed in the research reports can only be made through the accompanied broker-broker, in accordance with the requirements of paragraph a) (3). Section 15 bis-6, point (a) 3) requires the accompanying broker, among other things, to keep all books and records relating to transactions made in connection with these transactions; 17a-3 and 17a-4 under the Exchange Act. Accordingly, a chaperoning brokerage dealer receives a copy of a research report distributed directly to large institutional investors in the United States by a foreign broker, in accordance with Rule 15a-6 (a) (a) (whatever the source of origin), this research report should be retained by the client broker, given his obligation to trade on the securities described above. Question 18: Does the definition of “large U.S. institutional investor” include companies owned exclusively by other major U.S. institutional investors? Answer: Yes. A chaperone broker dealer can rely on a foreign broker to supply the United States. institutional investors or large institutional investors (if any), accompanied by all confirmations and declarations necessary to satisfy Rule 15 bis-6 (a) (3) (iii) (A) (2), regardless of that, If foreign law requires the foreign broker to provide these documents to U.S.

counterparties.16 In this regard, the Staff considers that the preparation and delivery of the confirmation or return are analogous to any situation in which a registered broker-dealer uses a third-party supplier. to prepare these documents and send them to clients. [14] Rule 17a-4 sets the period during which these records must be kept by the deposit broker. The seller of brokers chaperoning us must provide a written record of the above information and consents for notification of the procedure by related persons of the foreign broker in his office and make them available to the SEC upon request. (return) Answer: Yes. Rule 15a-6 (a) (2) (2) allows a foreign broker to: Provide research reports to large U.S. institutional investors and conduct transactions on securities examined in connection with or for these large institutional investors in the United States, provided certain conditions are met.17 The rule does not require that the distribution be made by a registered broker-dealer , even if the foreign broker has a chaperoneing agreement with a registered trader. In addition, the chaperone broker dealer would have no obligation regarding a research report if the chaperoneing brokerage dealer was not involved in the distribution (i.e. when the search was distributed directly by the foreign broker to large U.S. traders.

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