Series 26: Restrictions Against Borrowing And Lending With Customers

Restrictions Against Borrowing and Lending with 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 one or more of these other conditions apply:

• • The customer is an immediate family member of the associated person—firm’s procedures may indicate prior approval is not necessary.
• • The customer is an institution or person that lends money in its regular course of business and is acting in that capacity—firm’s procedure