Series 26: Restrictions Against Borrowing From And Lending To Customers

Restrictions Against Borrowing from and Lending to Customers

Associated persons are prohibited from borrowing money from customers or lending money to customers, unless (1) the member firm has written procedures that specifically allow it and (2) one of these other conditions applies:

• The customer is an immediate family member of the associated person—firm’s procedures may indicate prior approval is not necessary.

• The customer is a person or institution that lends money in its regular course of business and is acting in that capacity—firmâ€