eTrade 2011 Annual Report Download - page 183

Exchange and Sel
f
-Regulatory Organization Rules
E*TRADE is a member of many exchanges and SROs that issue and enforce rules about trading in securities, commodities and
related instruments, and about other aspects of E*TRADE’s business. Violations of exchange or SRO rules can lead to fines and
penalties against you and against E*TRADE.
Banking Laws and Regulations
Because of the nature of E*TRADE’s business, including the operation of federally charted savings banks, E*TRADE is subject to
numerous banking laws and regulations. Violations of such rules can lead to fines and penalties against you and against E*TRADE.
Licensing, Registration and Reporting of Specified Arrests, Convictions or Civil Actions
Many jurisdictions require licensing or registration of individuals who perform certain activities in the financial services industry.
These requirements apply to many individual E*TRADE employees. All employees are personally responsible for meeting the
registration requirements in the jurisdiction where they are physically located and wherever they conduct business; and supervisors
are responsible for assuring that personnel under their supervision meet the proper registration requirements. Employees are
responsible for providing requisite information regarding their licensure and any changes thereto (such as a change in name or
residential address) to E*TRADE for its books and records. Employees who maintain registrations with FINRA or other SROs are
also responsible for promptly notifying the Compliance Department of any changes in the information that appears on the employee’s
Form U-4. Changes in U-4 information must be made within 30 days of the date of the change in information. In addition, under
applicable FINRA rules, E*TRADE is required to report certain events, such as customer complaints and arbitrations, regardless of
the merits of such claims.
For further information, please see
https://mychannele.corp.etradegrp.com/web/guest/departments/brokeragecompliance/registrationlicensing/needs.
Personal Legal Matters
E*TRADE must report and disclose certain information regarding arrests or criminal charges against an employee, including
securities or commodities-related civil litigation, as well as personal financial matters. Thus, employees must notify their direct
supervisor and the Legal and Compliance Departments immediately if any of the following events occurs:
5
•
At any time during your employment, you are indicted, convicted of, or plead guilty or no contest to any felony in a domestic,
militar
y
or forei
g
n court;
• At any time during your employment, you are indicted, convicted of, or plead guilty or no contest to any misdemeanor that
involves the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary,
larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion,
misappropriation of funds or securities, conspiracy to commit any of these offenses, or any substantially equivalent activity in a
domestic, militar
y
or forei
g
n court;