If you elect to satisfy Sec. 551.70 by providing the customer a written notice, you must give or send the written notice at or before the completion of the securities transaction. You must include all of the following information in a written notice:
(a) Your name and the customer's name.
(b) The capacity in which you acted (for example, as agent).
(c) The date and time of execution of the securities transaction (or a statement that you will furnish this information within a reasonable time after the customer's written request), and the identity, price, and number of shares or units (or principal amount in the case of debt securities) of the security the customer purchased or sold.
(d) The name of the person from whom you purchased or to whom you sold the security, or a statement that you will furnish this information within a reasonable time after the customer's written request.
(e) The amount of any remuneration that you have received or will receive from the customer in connection with the transaction unless the remuneration paid by the customer is determined under a written agreement, other than on a transaction basis.
(f) The source and amount of any other remuneration you have received or will receive in connection with the transaction. If, in the case of a purchase, you were not participating in a distribution, or in the case of a sale, were not participating in a tender offer, the written notice may state whether you have or will receive any other remuneration and state that you will furnish the source and amount of the other remuneration within a reasonable time after the customer's written request.
(g) That you are not a member of the Securities Investor Protection Corporation, if that is the case. This does not apply to a transaction in shares of a registered open-end investment company or unit investment trust if the customer sends funds or securities directly to, or receives funds or securities directly from, the registered open-end investment company or unit investment trust, its transfer agent, its custodian, or a designated broker or dealer who sends the customer either a confirmation or the written notice in this section.
(h) Additional disclosures. You must provide all of the additional disclosures described in the following chart for transactions involving certain debt securities: ------------------------------------------------------------------------
You must provide the
If you effect a transaction involving . . following additional
. information in your written
(1) A debt security subject to redemption A statement that the issuer
before maturity. may redeem the debt
security in whole or in
part before maturity, that
the redemption could affect
the represented yield, and
that additional redemption
information is available
upon request.(2) A debt security that you effected (i) The dollar price at
exclusively on the basis of a dollar which you effected the
price. transaction; and
(ii) The yield to maturity
calculated from the dollar
price. You do not have to
disclose the yield to
maturity if:
(A) The issuer may extend
the maturity date of the
security with a variable
interest rate; or
(B) The security is an
asset-backed security
that represents an
interest in, or is
secured by, a pool of
receivables or other
financial assets that
are subject continuously
to prepayment.(3) A debt security that you effected on (i) The yield at which the
basis of yield. transaction, including the
percentage amount and its
characterization (e.g.,
current yield, yield to
maturity, or yield to
call). If you effected the
transaction at yield to
call, you must indicate the
type of call, the call
date, and the call price;
(ii) The dollar price
calculated from that yield;
and
(iii) The yield to maturity
and the represented yield,
if you effected the
transaction on a basis
other than yield to
maturity and the yield to
maturity is lower than the
represented yield. You are
not required to disclose
this information if:
(A) The issuer may extend
the maturity date of the
security with a variable
interest rate; or
(B) The security is an
asset-backed security
that represents an
interest in, or is
secured by, a pool of
receivables or other
financial assets that
are subject continuously
(i) A statement that the
backed security that represents an actual yield of the asset-
interest in, or is secured by, a pool of backed security may vary
receivables or other financial assets according to the rate at
that are subject continuously to which the underlying
prepayment. receivables or other
financial assets are
prepaid; and
(ii) A statement that you
will furnish information
concerning the factors that
affect yield (including at
a minimum estimated yield,
weighted average life, and
the prepayment assumptions
underlying yield) upon the
customer's written request.(5) A debt security, other than a A statement that the
government security. security is unrated by a
nationally recognized
statistical rating
organization, if that is
the case.------------------------------------------------------------------------