Series 52: 8.4.2.2.2. Control Relationships

Taken from our Series 52 Top Off Online Guide

8.4.2.2.2.  Control Relationships

A control relationship, with respect to a municipal security, exists when a broker-dealer controls, is controlled by, or is under common control with the issuer of the security. Someone controls a company who has the power to influence or direct its policies and management. Perhaps an elected official works on the board of a broker-dealer or a manager of an issuer has a cousin in a position of influence with its financial advisor.

No broker-dealer may execute a transaction in a municipal security with a customer if it has a control re

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