Rule G-24 Use of Ownership Information Obtained in Fiduciary or Agency Capacity

Use of Ownership Information Obtained in Fiduciary or Agency Capacity

Summary: Prohibits dealers from using non-public information obtained in the course of certain fiduciary or agency capacities concerning the ownership of securities in furtherance of their business activities or for financial gain.

No broker, dealer, or municipal securities dealer having access to confidential, non-public information concerning the ownership of municipal securities that was obtained by such broker, dealer, or municipal securities dealer (or by a bank or other person of which the broker, dealer, or municipal securities dealer is a department or division) in the course of acting in a fiduciary or agency capacity for an issuer of municipal securities or for another broker, dealer, or municipal securities dealer, including but not limited to acting as a paying agent, transfer agent, registrar, or indenture trustee for an issuer or as clearing agent, safekeeping agent, or correspondent of another broker, dealer, or municipal securities dealer, shall use such information for the purpose of soliciting purchases, sales, or exchanges of municipal securities or otherwise make use of such information for financial gain except with the consent of such issuer or such broker, dealer, or municipal securities dealer or the person on whose behalf the information was given.