Securities Lawyer's Deskbook
                         published by The University of Cincinnati College of Law
UC Law logo


General Rules and Regulations
promulgated
under the
Securities Exchange Act of 1934





Rule 15g-1 -- Exemptions for Certain Transactions


The following transactions shall be exempt from Rule 15g-2, Rule 15g-3, Rule 15g-4, Rule 15g-5, and Rule 15g-6:
  1. Transactions by a broker or dealer:

    1. Whose commissions, commission equivalents, mark-ups, and mark-downs from transactions in penny stocks during each of the immediately preceding three months and during eleven or more of the preceding twelve months, or during the immediately preceding six months, did not exceed five percent of its total commissions, commission equivalents, mark-ups, and mark-downs from transactions in securities during those months; and

    2. Who has not been a market maker in the penny stock that is the subject of the transaction in the immediately preceding twelve months.


      Note: Prior to April 28, 1993, commissions, commission equivalents, mark-ups, and mark-downs from transactions in designated securities, as defined in Rule 15c2-6(d)(2) as of April 15, 1992, may be considered to be commissions, commission equivalents, mark-ups, and mark-downs from transactions in penny stocks for purposes of paragraph (a)(1) of this section.

  2. Transactions in which the customer is an institutional accredited investor, as defined in Rule 501(a)(1),(2),(3),(7), or (8).

  3. Transactions that meet the requirements of Regulation D, or transactions with an issuer not involving any public offering pursuant to Section 4(2) of the Securities Act of 1933.

  4. Transactions in which the customer is the issuer, or a director, officer, general partner, or direct or indirect beneficial owner of more than five percent of any class of equity security of the issuer, of the penny stock that is the subject of the transaction.

  5. Transactions that are not recommended by the broker or dealer.

  6. Any other transaction or class of transactions or persons or class of persons that, upon prior written request or upon its own motion, the Commission conditionally or unconditionally exempts by order as consistent with the public interest and the protection of investors.


Regulatory History


57 FR 18032, Apr. 28, 1992

Return to top

Notice to Users: The Deskbook is made available with the understanding that the University of Cincinnati College of Law is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. See Terms and Conditions of Use.  UC Brand Ingot

© Copyright 1998-2009, University of Cincinnati, All Rights Reserved
 Contact: ronald.jones@uc.edu