Series 51: Limits On Accounts Of Employees Of Other Municipal Securities Dealers

Limits on Accounts of Employees of Other Municipal Securities Dealers

Municipal securities dealers are not permitted to open or maintain municipal securities accounts in which transactions are made for a customer who is employed by another broker-dealer, unless they first give written notice to the customer’s firm. Thus, prior written notice must be given, but prior approval from the customer’s firm is not necessary.

This rule also applies to customers who are the spouses or minor children of someone employed by another broker-dealer. However, a dealer need not question each cus