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 032-506-2 - Definitions

Universal Citation: 02 ME Code Rules ยง 032-506-2

Current through 2024-38, September 18, 2024

For purposes of this rule, the following definitions shall apply:

1. Broker-dealer. "Broker-dealer" has the same meaning as in 32 M.R.S.A. §16102(4).

2. Control. "Control" has the same meaning as in 9-B M.R.S.A. §1011(4).

3. Financial institution. "Financial institution" means a financial institution as defined in 9-B M.R.S.A. §131(17) and a credit union as defined in 9-B M.R.S.A. §131(12).

4. Financial institution authorized to do business in this State. "Financial institution authorized to do business in this State" means a financial institution authorized to do business in this state as defined in 9-B M.R.S.A. §131(17-A) and a credit union authorized to do business in this state as defined in 9-B M.R.S.A. §131(12-A), which includes a "financial institution" as defined in sub-section 3 of this section.

5. Mutual fund. "Mutual fund" means an investment company as defined in the Investment Company Act of 1940, 15 U.S.C. § 80 a-3 (2001).

6. Retail area. "Retail area" means all space occupied by a financial institution where the "business of banking" as defined in 9-B M.R.S.A. §131(5) may occur.

7. Agent. "Agent" has the same meaning as in 32 M.R.S.A. §16102(2).

8. Security. "Security" has the same meaning as in 32 M.R.S.A. §16102(28).

9. Third party broker-dealer. "Third party broker-dealer" means a broker-dealer, including a broker-dealer that is controlled by a financial institution authorized to do business in this State or financial institution holding company, licensed by the Maine Office of Securities and registered with the National Association of Securities Dealers, that has entered into a written contractual agreement with a financial institution authorized to do business in this State to offer brokerage services to customers of the institution with compensation to the institution, directly or indirectly, for the transactions or services conducted with the institution's customers.

10. Third party brokerage arrangement. "Third party brokerage arrangement" means an agreement between a third party broker-dealer and a financial institution authorized to do business in this State, whereby the broker-dealer agrees to provide securities services to the customers of the institution and to compensate the institution for the transactions or services conducted with its customers.

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