021-14 Wyo. Code R. § 14-11

Current through April 27, 2019

Section 14-11 - Conflict of Interest Prohibited; Use of Fiduciary and Discretionary Funds Restricted

(a) A bank shall comply with all applicable state and federal restrictions to prevent a conflict of interest in

• (i) transactions involving the purchase of securities with funds held by the bank in a trust, fiduciary or discretionary account by the use of brokerage services provided by the bank or by a broker which compensates the bank or

• (ii) bank-related sales of insurance.

(b) The bank shall not execute securities transactions involving funds or securities held by the bank as fiduciary, with its own brokerage service or with a broker which compensates the bank, unless such transactions are authorized by the instrument creating the fiduciary relationship, by state statute or by court order.

(c) The bank shall not execute securities transactions involving funds held by the bank in a discretionary account, with its own brokerage service or with a broker which compensates the bank, unless the transaction is authorized by the beneficial owner of the account.

(d) The compensation of bank employees or dual employees based on commissions for brokerage transactions executed could provide an incentive for the employee to sell securities unsuitable to the customer, or to sell securities rather than bank deposit investments. Such a method of compensating employees, while not a conflict of interest per se, may be subject to criticism and correction upon examination.

021-14 Wyo. Code R. § 14-11