eTrade 2011 Annual Report Download - page 182

Standards of Conduct
RESPONSIBILITIES UNDER THE LAW
E
mployees, Officers and Directors are responsible for reviewing, understanding and adhering to all laws, regulations, industry
standards and E*TRADE policies and procedures related to their work activities and professional responsibilities.
The activities of E*TRADE and its employees, officers and directors are regulated by governmental entities, such as the Securities
and Exchange Commission (“SEC”), the Office of Thrift Supervision (“OTS”) and various state regulators and self-regulatory
organizations (“SROs”), such as the Financial Industry Regulatory Authority (“FINRA”). As a result of the recently enacted financial
regulatory reform legislation, E*TRADE will be regulated by a number of other governmental agencies and SROs. E*TRADE is
committed to full compliance with all applicable laws, rules and regulations and industry standards, as well as full adherence to the
provisions of this Code and all of E*TRADE’s other policies and procedures. Accordingly, you must comply with all applicable laws,
rules and regulations, industry standards, the provisions of this Code applicable to you, and all of E*TRADE’s other policies and
procedures applicable to your business unit and relevant to your role with E*TRADE (“Applicable Requirements”).
Failure to comply with Applicable Requirements can cause significant harm to E*TRADE, and it can have severe consequences for
you personally. Specifically, you may be held personally liable for improper or illegal acts committed during your employment or
other professional relationship with E*TRADE. Such liability could subject you to civil or criminal penalties (fines and/or
imprisonment), regulatory sanctions (censure, suspension or industry bar) and disciplinary action by E*TRADE, up to and including
termination of your employment or other professional relationship with E*TRADE.
The following is a general summary of certain laws and other rules that apply to E*TRADE. The summary does not address every
Applicable Requirement, all of which, as previously stated, you are required to review, understand and adhere. Ignorance of
applicable laws, regulations, rules, policies or procedures will not excuse E*TRADE or you from potential penalties or sanctions,
including internal disciplinary action.
Securities Laws
Because E*TRADE is licensed and regulated in a number of jurisdictions, it is subject to numerous securities laws and rules. These
laws and rules address, among other things, licensing requirements, financial reporting and disclosure, and insider trading rules.
E*TRADE is fully committed to compliance with these and all other applicable laws, rules and regulations.
4