Broker dealers who act as underwriters and investment bankers for corporate clients must have access to information regarding the company in order to advise the company properly. The broker dealer must ensure that no inside information is passed between its investment banking department and its retail trading departments. The broker dealer is required to physically separate these divisions by a firewall. The broker dealer must maintain written supervisory procedures to adequately guard against the wrongful use or dissemination of inside information.
THE TELEPHONE CONSUMER PROTECTION ACT OF 1991
The Telephone Consumer Protection Act of 1991 regulates how telemarketing calls are made by businesses. Telemarketing calls that are designed to have consumers invest in or purchase goods, services, or property must adhere to the strict guidelines of the act. All firms must:
• Call only between the hours of 8 a.m. and 9 p.m.
• Maintain a Do-Not-Call list. Individuals placed on the Do-Not-Call list may not be contacted by anyone at the firm for five years.
• Give the prospect the firm's name, address, and phone number when soliciting.
• Follow adequate policies and procedures to maintain a Do-Not-Call list.
• Train representatives on calling policies and use of the Do-Not-Call list.
• Ensure that any fax solicitations have the firm's name, address, and phone number.
EXEMPTION FROM THE TELEPHONE CONSUMER PROTECTION ACT OF 1991
The following are exempt from the Telephone Consumer Protection Act of 1991:
• Calls to existing customers.
• Calls to a delinquent debtor.
• Calls from a religious or nonprofit organization.
Calls may be made prior to 8 a.m. or after 9 p.m. to places of business. The time regulation only relates to contacting noncustomers at home.