Section 36b-31-15b - Dishonest or unethical business practices by agents(a) In implementing section 36b-15(a) (2) (H) of the general statutes, the following shall be deemed "dishonest or unethical practices in the securities . . . business" by agents without limiting those terms to the following practices: (1) Borrowing money or securities from an account carried for a customer without the customer's prior consent and without notice to the broker-dealer whom the agent represents;(2) Engaging in conduct prohibited by section 36b-31-6 e of the regulations;(3) Operating an account under a fictitious name, unless disclosed to the broker-dealer whom the agent represents;(4) Sharing directly or indirectly in profits or losses in the account of any customer without the prior written authorization of the customer and of the broker-dealer carrying the account; and such sharing in the profits and losses of an account shall be only in direct proportion to the financial contributions made to such account by the agent;(5) Dividing or otherwise splitting commissions, profits or other compensation receivable in connection with the purchase or sale of securities in this state with any person not registered in this state and employed by the same broker-dealer;(6) Where the agent is concurrently registered as an agent of more than one broker-dealer, as an agent of a broker-dealer and an agent of an issuer, or as an agent of a broker-dealer and an investment adviser agent, failing to disclose to the customer in writing the multiple capacity in which the agent is acting;(7) Effecting transactions in securities products concerning which the agent has not taken and successfully passed an examination given by a self- regulatory organization registered under the Securities Exchange Act of 1934 which would qualify the agent to sell, offer to sell or buy such products; and(8) Engaging in any of the practices specified in subdivisions (1), (2), (4) to (6), inclusive, (9), (12), (13), (15) to (21), inclusive, and (23) of section 36b-31-15 a (a) of the regulations.(b) The finding that an agent has engaged in any of the practices described in subsection (a) of this section shall not in and of itself operate as a finding that the broker-dealer whom the agent represents has engaged in such practice or practices.(c) In construing the term "dishonest or unethical practices in the securities . . . business" as used in this section and in section 36b-15(a) (2) (H) of the general statutes, the commissioner may consider whether the conduct in question is proscribed by any rule of a national securities exchange or self-regulatory organization registered under federal securities laws administered by the United States Securities and Exchange Commission.Conn. Agencies Regs. § 36b-31-15b
Effective August 22, 1994; Transferred July 3, 1995