Markups, Markdowns, and Commissions

What this video covers

• Why the 5% policy is a rebuttable presumption ceiling, not a safe harbor, and how disclosure does not cure an unfair price
• The seven factors FINRA expects firms to weigh when judging whether any markup, markdown, or commission is fair under all the circumstances
• Why the miscellaneous charges rule requires 30 days advance written notice for any fee change, regardless of how reasonable the new fee is
• How the net transaction rule splits consent requirements by customer type: order-by-order written consent for non-institutional customers versus a one-time negative-consent letter for institutional customers
• Why net transactions apply only to principal trades, and what distinguishes them from separately disclosed agency commissions
• The mandatory elements on every customer confirmation, and why capacity disclosure is non-waivable even if every other field is perfect
• When the retail debt markup disclosure amendment triggers, and exactly what must appear on the confirmation: dollar amount, percentage of prevailing market price, execution time to the second, and the TRACE hyperlink