Current through August 31, 2023
01.
Supervision Required. Every
broker-dealer, investment adviser, and designated supervisor shall exercise
diligent supervision over the securities activities of all of his agents,
investment adviser representatives and employees. (3-23-22)
02.
Broker-Dealer Procedures.
Every agent and employee of the broker-dealer shall be subject to the
supervision of a supervisor designated by such broker-dealer. The supervisor
may be the broker-dealer in the case of a sole proprietor, or a partner,
officer, office manager, or any other qualified person. (3-23-22)
03.
Written Compliance
Procedure. Every broker-dealer shall establish, maintain and enforce
written procedures and keep a copy in each business office, that set forth the
procedures adopted by the broker-dealer to comply with the following duties
imposed by this rule, and state at which business office or offices the
broker-dealer keeps and maintains the records required by Section
30-14-411, Idaho Code: (3-23-22)
a. The review and written approval by the
designated supervisor of the opening of each new customer account;
(3-23-22)
b. The frequent
examination of all customer accounts to detect and prevent irregularities or
abuses, including a review for churning and switching of securities in
customers' accounts, as well as unsuitable recommendations and sales of
unregistered securities; (3-23-22)
c. The prompt review and written approval by
the designated supervisor of all securities transactions and all correspondence
pertaining to the solicitation or execution of all securities transactions;
(3-23-22)
d. The review of back
office operations, i.e., all systems and procedures, including the currency and
accuracy of books and records, the status and causes of "Fails to Receive" and
"Fails to Deliver." net capital, credit extensions and financial reports;
(3-23-22)
e. The review of form,
content and filing of all correspondence related in any way to the purchase or
sale or solicitation for the purchase or sale of securities;
(3-23-22)
f. The review and written
approval by the designated supervisor of the delegation by any customer of
discretionary authority with respect to his account to a stated agent or
associate of the broker-dealer and the prompt written approval of each
discretionary order entered on behalf of that account; and (3-23-22)
g. The prompt review and written approval of
the handling of all customer complaints. As used in these rules, "complaint" is
considered to be any written statement by a customer or by any person acting
for a customer which complains about the activities of the broker-dealer, agent
or associate in connection with the solicitation or execution of a transaction
or the disposition of funds of that customer. (3-23-22)
04.
Investment Adviser
Procedures. Every investment adviser shall establish, maintain and
enforce written procedures and keep a copy in each business office, that set
forth procedures reasonably designed to prevent violation of the Idaho Uniform
Securities Act and Rules and comply with the following duties as applicable to
the business of the investment adviser: (3-23-22)
a. The review and written approval by the
designated supervisor of the opening of each new customer account;
(3-23-22)
b. The frequent
examination of all customer accounts to detect and prevent irregularities or
abuses, including a review for unsuitable recommendations and recommendations
of unregistered securities; (3-23-22)
c. The prompt review and written approval by
the designated supervisor of all securities recommendations and all
correspondence pertaining to the solicitation or execution of all securities
recommendations; (3-23-22)
d. The
review of form, content and filing of all correspondence related in any way to
the recommendation of the purchase of any securities; (3-23-22)
e. The prompt review and written approval of
the handling of all customer complaints. As used in these rules, a "complaint"
is considered to be any written statement by a customer, or by any person
acting for a customer, questioning the activities of the investment adviser or
representative in connection with recommendations concerning, or disposition
of, funds in the account. (3-23-22)
