Regulatory Alerts2012-12-26
Dishonest or Unethical Practices Rule
The Louisiana Commissioner of Financial Institutions promulgated this rule to define illustrative examples of dishonest or unethical practices that justify the suspension or revocation of registration for dealers, salesmen, investment advisers, and their representatives. Section 1203 establishes specific conduct standards for dealers and salesmen, including requirements for suitable recommendations, proper authorization for discretionary trading, accurate pricing disclosures, and transparent fee structures. Section 1205 extends similar suitability, conflict-of-interest disclosure, and contract compliance mandates to investment advisers and representatives, ensuring alignment with the Louisiana Securities Law and public interest.
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