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Can you summarize 16 HIAR Chapter 39, Subchapter 5?
SECURITIES > FRAUDULENT PRACTICES OF BROKER-DEALERS, BROKER-DEALER AGENTS, AND AGENTS OF AN ISSUER
Short Summary
This section of the Hawaii Administrative Rules governs the fraudulent practices of broker-dealers, broker-dealer agents, and agents of an issuer. It applies to individuals and entities involved in the securities business. The section identifies practices that are generally associated with schemes to manipulate and deems engaging in any of these practices as an ‘act, practice, or course of business that operates or would operate as a fraud or deceit.’ The listed practices include entering into transactions at unreasonable prices or commissions, contradicting prospectus information, falsely leading customers to believe possession of insider information, making contradictory recommendations, failing to make bona fide public offerings, and engaging in manipulative, deceptive, or fraudulent acts. The section also includes specific provisions applicable to the solicitation of OTC unlisted non-NASDAQ equity securities. It is important to note that this section is not exhaustive, and other acts or practices not listed may also be deemed fraudulent.
Whom does it apply to?
Broker-dealers, broker-dealer agents, and agents of an issuer
What does it govern?
Fraudulent practices of broker-dealers, broker-dealer agents, and agents of an issuer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
Hawaii