Conduct of Associated Persons: Rapid Fire

What this video covers

• Why standards of commercial honor require zero customer harm and even reach off-the-job conduct, and how they stack with any other violation
• The three requirements for profit-and-loss sharing (prior written firm approval, customer approval, proportionate split) and the one condition that waives only proportionality
• Why intent to repay is irrelevant for misuse of customer assets, and how firm written supervisory procedures control all borrowing-from-customer exceptions
• The difference between classical insider-trading theory (duty to shareholders) and misappropriation theory (duty to the source, no issuer connection needed)
• How watch lists (internal, pre-public) differ from restricted lists (firm-wide, post-public) in information-barrier policies
• Why a private securities transaction with any selling compensation instantly becomes a firm trade that must be recorded and supervised as such
• The Exchange Act Criminal Ladder (5-20-25) and the transaction-review reporting clocks (5 business days for violations found, 10 business days quarterly for investigations initiated), including which applies only to investment banking firms