Utah Administrative Code
Topic - Financial Institutions
Title R337 - Credit Unions
Rule R337-7 - Discount Securities Brokerage Service by State-Chartered Credit Unions
Section R337-7-3 - Discount Brokerage Services
Current through Bulletin 2024-06, March 15, 2024
A credit union may enter into a contractual arrangement with unrelated discount brokers where the broker executes securities transactions for credit union members and the credit union shares the commissions generated by the transaction. This service is restricted as outlined below:
(1) The credit union clearly acts solely at the member's direction;
(2) The transactions are for the account of the member and not the account of the credit union;
(3) The transactions are without recourse;
(4) The credit union makes no warranty as to the performance or quality of any security;
(5) The credit union does not advise members to make any particular investment;
(6) The credit union's promotional material clearly explains the credit union's limited role in the service; and
(7) The credit union's promotional material clearly explains that the transactions are not federally insured.