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Bank Dealers, Dealers, Municipal Advisors
Bank Dealers, Dealers, Municipal Advisors
Bank Dealers, Dealers, Municipal Advisors
Bank Dealers, Dealers, Municipal Advisors
Bank Dealers, Dealers, Municipal Advisors
Excerpt from Notice of Approval of Fair Practice Rules
Rule D-10 defines a discretionary account as an account for which a municipal securities professional has been authorized to determine what municipal securities will be purchased, sold or exchanged by or for the account. The definition covers accounts for which a municipal securities professional exercises discretionary authority from time to time, as well as accounts in which the customer sometimes, but not always, makes investment decisions. Under rule D-10, a discretionary account will not be deemed to exist if the professional’s discretion is limited to the price at which, or the time at which, an order given by a customer for a definite amount of a specified security is executed. The definition relates to discretion concerning what municipal securities will be purchased, sold or exchanged, rather than when or at what price such transactions may occur.