MELBOURNE CHANGE

Press, Volume CII, Issue 30113, 23 April 1963, Page 19

MELBOURNE CHANGE

New Rules For Member

The Stock Exchange of Melbourne lias introduced a new rule to limit the nonshare broking activities of its members

The regulation, which became effective on Wednesday, states that, except with the consent of the committee, the offices of a member or member firm shall not be used: As the registered office or place of business of any

company or corporation. As a place where any register of securities of a company or corporation is maintained.

The regulation permits members or member arms’ offices to be in the same building as the office of a company. Such offices, however, shall be *'distinct and separate from each other, including the provision of separate telephone exchange lines and numbers.” the regulation says Employees

Another provision says that employees of a member or member firm shall not be permitted to be employees or agents of a company except with the consent of the committee.

Stock Exchange rules prevent brokers from advertising or canvassing for clients Criticisms have recently been made that broking firms have been able to form proprietary companies through which they could approach clients and raise money from the public. It has been claimed that firms with such associated companies had an unfair advantage over other brokers.

The Australian Shareholders' Association recently criticised the operations of one Melbourne broking firm.