If you elect to satisfy Sec. 151.70 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 followingIf you effect a transaction involving . additional information in your
(1) A debt security subject to A statement that the issuer may
redemption before maturity. 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 which
exclusively on the basis of a dollar you effected the transaction;
price. 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 (i) The yield at which the
on 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
(i) A statement that the actual
backed security that represents an yield of the asset-backed
interest in, or is secured by, a pool security may vary according to
of receivables or other financial the rate at which the
assets that are subject continuously underlying receivables or
to prepayment. 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 security
government security. is unrated by a nationally
recognized statistical rating
organization, if that is the
case.------------------------------------------------------------------------