10 Pa. Code § 304.051. Broker-dealer compensation.

§ 304.051. Broker-dealer compensation.

(a)  A broker-dealer registered under the act may not charge or receive commissions or other compensation in connection with the purchase or sale of securities.
(b)  The prohibition contained in subsection (a) does not apply if the compensation is:
   (1)  Fair and reasonable.
   (2)  Determined on an equitable basis.
   (3)  Adequately disclosed to each customer in writing at or before final confirmation.
(c)  Compensation which complies with the Conduct Rules of FINRA will be considered fair and reasonable and, unless otherwise required to be disclosed in writing by the Conduct Rules, does not need to be disclosed in writing.

Authority

   The provisions of this §  304.051 amended under section 304(a), (d) and (e) and 609(a) of the Pennsylvania Securities Act of 1972 (70 P.S. § §  1-304(a), (d) and (e) and 1-609(a)); section 202.C of the Department of Banking and Securities Code (71 P.S. §  733-202.C); and section 9(b) of the Takeover Disclosure Law (70 P.S. §  79(b)).

Source

   The provisions of this §  304.051 adopted May 31, 1974, effective June 1, 1974, 4 Pa. B. 1085; amended December 28, 2001, effective December 29, 2001, 31 Pa.B. 7032; transferred and renumbered from 64 Pa. Code §  304.051, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533; amended January 12, 2018, effective January 13, 2018, 48 Pa.B. 389. Immediately preceding text appears at serial page (364766).

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