Segregation of Accounts by Broker-Dealers

PURPOSE: This rule prescribes the commingling by broker-dealers of their personal funds and commodities with those of their customers and provides for the maintenance of separate records. (1) Every broker-dealer shall at all times keep its customers’ funds and commodities in trust and segregated from its own funds and commodities provided, however, that compliance with Securities and Exchange Commission or Commodity Futures Trading Commission regulations governing the use, commingling and hypothecation of customers’ commodities and free credit balances shall be deemed in compliance with this rule. (2) Every broker-dealer which engages in more than one (1) enterprise or activity shall maintain separate books of accounts and records relating to its commodities business and its other businesses and the assets relating to its commodities business shall not be commingled with those of such other businesses. Every broker-dealer shall maintain a clearly defined division among such businesses with respect to income and expenses. AUTHORITY: sections 409.858(6) and 409.863, RSMo 1986.* This rule was previously filed as 15 CSR 30-60.080. Emergency rule filed Oct. 2, 1985, effective Oct. 12, 1985, expired Feb. 9, 1986. Original rule filed Aug. 22, 1986, effective Jan. 30, 1987. *Original authority: 409.858, RSMo 1985 and 409.863, RSMo 1985.