Local Policy 3.06
Range of Trading Permitted Registrants Holding Restricted Registrations
Date: September 1, 1971
The Commission wishes to make clear its position on the range of trading permitted registrants holding restricted registrations.
The Commission's interpretation of the effect of a restricted registration is that a registrant holding such a registration is not entitled to trade in securities, even exempt securities, other than those specifically authorized by the registration, without first applying for and securing an appropriate amendment to the registration.
The Commission is also of the view that as a general proposition, such amendments should be granted only where the additional security sought to be sold is of a type which is fully compatible with the type of securities already authorized by the registration.
Registrants holding restricted registrations should review their activities, including the activities of their salesmen, (whose registrations carry the same restrictions as the employing dealers) to ensure compliance.