North Dakota Code 6-05.2-01 – Policies and procedures on brokerage placement practices
Each banking institution exercising investment discretion with respect to an account must adopt and follow written policies and procedures intended to ensure that its brokerage placement practices comply with all applicable laws and regulations. Among other relevant matters, the written policies and procedures should address when appropriate:
Terms Used In North Dakota Code 6-05.2-01
- Banking: means the business of receiving deposits, making loans, discounting commercial paper, issuing drafts, traveler's checks, and similar instruments, handling and making collections, cashing checks and drafts, and buying and selling exchange. See North Dakota Code 6-01-02
- written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37
1. The selection of persons to effect securities transactions and the evaluation of the reasonableness of any brokerage commissions paid to such persons.
2. The acquisition of any services or products, including research services, in return for brokerage commissions.
3. The allocation of research or other services among accounts, including those which did not generate commissions to pay for the research or other services.
4. The need, in appropriate instances, to make disclosures concerning the policies and procedures to prospective and existing customers.