Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
032 - OFFICE OF SECURITIES
Chapter 506 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS
Section 032-506-1 - Purpose

Universal Citation: 02 ME Code Rules ยง 032-506-1
Current through 2024-38, September 18, 2024

This joint rule, which repeals and replaces both the Bureau of Financial Institutions Regulation 29 and the Office of Securities Rule 506, gives direction to broker-dealers and financial institutions regarding their respective obligations in any third party brokerage arrangements in Maine. This joint rule also contains directives to financial institutions authorized to do business in this state, for qualifying for the third party broker-dealer exclusion from the definition of broker-dealer contained in 32 M.R.S.A. §16102(4)(C). For purposes of complying with the securities laws, the rule gives all financial institutions a safe harbor under GLB from broker-dealer licensing if they enter into a third party brokerage arrangement as described in the rule. Broker-dealers must comply with the provisions of Sections 5 and 6 for any arrangement with financial institutions whether the financial institution is state or federally chartered. The rule does not grant a safe harbor to financial institution holding companies, subsidiaries of financial institutions or credit union service organizations, which must be licensed with the Maine Office of Securities as broker-dealers.

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