Rule 401. Business Conduct
This rule is no longer applicable. Incorporated NYSE Rule 401 has been superseded by FINRA Rule 3110. Please consult the appropriate FINRA Rule.
(a) Every member, allied member and member organization shall at all times adhere to the principles of good business practice in the conduct of his or its business affairs.
(b) Each member and member organization shall maintain written policies and procedures, administered pursuant to the internal control requirements prescribed under Rule 342.23, specifically with respect to the following activities:
(1) Transmittals of funds (e.g., wires, checks, etc.) or securities:
(i) from customer accounts to third party accounts (i.e., a transmittal that would result in a change of beneficial ownership.);
(ii) from customer accounts to outside entities (e.g., banks, investment companies, etc.);
(iii) from customer accounts to locations other than a customer's primary residence (e.g., post office box, "in care of" accounts, alternate address, etc.);
(iv) between customers and registered representatives (including the hand-delivery of checks).
(2) Customer changes of address.
(3) Customer changes of investment objectives.
The policies and procedures required under (b)(1), (2), and (3) above must include a means/method of customer confirmation, notification, or follow-up that can be documented.
June 17, 2004 (Effective December 17, 2004) (SR-NYSE-2002-36).
Amended by SR-FINRA-2008-036 eff. Nov. 11, 2008.
Amended by SR-FINRA-2008-028 eff. Dec. 15, 2008.
Selected Notices: 08-57, 08-64.