ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 23, 1996 TAG: 9608230059
SECTION: BUSINESS PAGE: A-13 EDITION: METRO
DATELINE: WASHINGTON
The Securities and Exchange Commission on Thursday approved new rules that give pension funds, college endowments and other large investors new protections when dealing with Wall Street government bond dealers.
The rules, proposed by the National Association of Securities Dealers Inc., extend sales practice protections found in the stock and corporate bond markets to government bond deals involving brokers and large institutional customers.
The rules require a broker to determine if a customer is capable of making an independent judgment on investment risks. And the broker has to determine if the customer is relying on the broker for investment advice.
Failure to obey the new rules can lead to fines and other sanctions.
The rules strike at expensive legal disputes over whether brokers peddle government securities, including derivatives, that are too risky for an investors' needs.
- Associated Press
LENGTH: Short : 29 linesby CNB