§ 151.100. What are the alternate notice requirements?
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/us/cfr/t12/s§ 151.100·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
You may elect to satisfy § 151.70 by providing the alternate notices described in the following chart for certain types of transactions. If you effect a securities transaction . . . Then you may elect to . . .
(a)For or with the account of a customer under a periodic plan, sweep account, or investment company planGive or send to the customer within five business days after the end of each quarterly period a written statement disclosing:
(1)Each purchase and redemption that you effected for or with, and each dividend or distribution that you credited to or reinvested for, the customer's account during the period;
(2)The date of each transaction;
(3)The identity, number, and price of any securities that the customer purchased or redeemed in each transaction;
(4)The total number of shares of the securities in the customer's account;
(5)Any remuneration that you received or will receive in connection with the transaction; and
(6)That you will give or send the registered broker-dealer confirmation described in § 151.80 or the written notice described in § 151.90 within a reasonable time after the customer's written request.
(b)For or with the account of a customer in shares of an open-ended management company registered under the Investment Company Act of 1940 that holds itself out as a money market fund and attempts to maintain a stable net asset value per shareGive or send to the customer the written statement described at paragraph
(a)of this section on a monthly basis. You may not use the alternate notice, however, if you deduct sales loads upon the purchase or redemption of shares in the money market fund.
(c)For an account for which you do not exercise investment discretion, and for which you and the customer have agreed in writing to an arrangement concerning the time and content of the written noticeGive or send to the customer a written notice at the agreed-upon time and with the agreed-upon content, and include a statement that you will furnish the registered broker-dealer confirmation described in § 151.80 or the written notice described in § 151.90 within a reasonable time after the customer's written request.
(d)For an account for which you exercise investment discretion other than in an agency capacity, excluding common or collective investment fundsGive or send the registered broker-dealer confirmation described in § 151.80 or the written notice described in § 151.90 within a reasonable time after a written request by the person with the power to terminate the account or, if there is no such person, any person holding a vested beneficial interest in the account.
(e)For an account in which you exercise investment discretion in an agency capacityGive or send each customer a written itemized statement specifying the funds and securities in your custody or possession and all debits, credits, and transactions in the customer's account. You must provide this information to the customer not less than once every three months. You must give or send the registered broker-dealer confirmation described in § 151.80 or the written notice described in § 151.90 within a reasonable time after a customer's written request.
(f)For a common or collective investment fund(1) Give or send to a customer who invests in the fund a copy of the annual financial report of the fund, or
(2)Notify the customer that a copy of the report is available and that you will furnish the report within a reasonable time after a written request by a person to whom a regular periodic accounting would ordinarily be rendered with respect to each participating account.
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§ 151.100
What are the alternate notice requirements?
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