Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since October 1, 2019, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R337. Financial Institutions, Credit Unions.
Rule R337-7. Discount Securities Brokerage Service by State-Chartered Credit Unions.
As in effect on October 1, 2019
Table of Contents
- R337-7-1. Authority, Scope, and Purpose.
- R337-7-2. Definitions.
- R337-7-3. Discount Brokerage Services.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
(1) This rule is issued pursuant to Subsection 7-1-301(3).
(2) This rule governs the type of securities brokerage service state chartered credit unions may offer.
(3) The purpose of this rule is to allow securities activities limited to "discount brokerage" services by state chartered credit unions, similar to the discount brokerage services allowed state chartered banks and industrial loan corporations.
(1) "Discount brokerage" means the practice of executing securities transactions solely at the direction of a credit union member but not providing that member with any investment advice.
A credit union may enter into a contractual arrangement with unrelated discount brokers where the broker executes securities transactions for credit union members and the credit union shares the commissions generated by the transaction. This service is restricted as outlined below:
(1) The credit union clearly acts solely at the member's direction;
(2) The transactions are for the account of the member and not the account of the credit union;
(3) The transactions are without recourse;
(4) The credit union makes no warranty as to the performance or quality of any security;
(5) The credit union does not advise members to make any particular investment;
(6) The credit union's promotional material clearly explains the credit union's limited role in the service; and
(7) The credit union's promotional material clearly explains that the transactions are not federally insured.
December 2, 1997
September 28, 2017
For questions regarding the content or application of rules under Title R337, please contact the promulgating agency (Financial Institutions, Credit Unions). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.