Series 7: 13.1.2. Restrictions On Borrowing From And Lending To Customers

Taken from our Series 7 Online Guide

13.1.2. Restrictions on Borrowing from and Lending to Customers

Associated persons are prohibited from borrowing money from customers or lending money to customers unless the member firm has written procedures that specifically allow it and any of these other conditions apply:

• Customer is an immediate family member of the associated person—firm’s procedures may indicate prior approval is not necessary

• Customer is an institution or person that lends money in its regular course of business and is acting in that capacity—firm’s procedures may indicate prior approval is not necessary

• Customer is also an associated person of the member firm

• Customer and associated person have a personal relation

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