Recommendations and Disclosures: Rapid Fire
Chapters in this video
- 0:00 The cast of the supervisory desk: Priya, Riley, and Carla
- 1:17 Reg BI vs. Suitability: retail natural person or institutional $50 million
- 1:58 Disclosure does not cure a Care Obligation failure
- 2:20 The three writings for discretionary accounts
- 2:56 Time and price discretion is NOT discretionary trading
- 3:27 Day trading: the repealed pattern day trader rule and intraday margin deficit
- 4:29 Mutual fund breakpoint sales and ROA/LOI checks
- 5:06 The four-step supervisory red flag workflow
- 5:32 Three timing buckets for Carla's mailbox disclosures
- 6:06 Form CRS retail investor trigger and six-year retention
- 6:33 Trusted Contact Person: informational only, no superpowers
- 7:15 Rapid-fire exam recap: need-to-know one-liners
What this video covers
- When Regulation Best Interest (Reg BI) applies versus when suitability applies, and why a suitable recommendation can still fail Reg BI
- The three required writings for discretionary accounts, and why oral authorization never suffices
- Why time and price discretion is not discretionary trading, and the single-business-day limit
- The intraday-margin-deficit framework that replaced the pattern day trader rule, including the 15-business-day deadline and 90-day restriction trigger
- What constitutes a breakpoint sale, and how rights of accumulation (ROA) and letters of intent (LOI) protect the customer
- The four-step supervisory workflow when catching red flags, and why failure to document is its own violation
- The three timing buckets for customer disclosures: annual stack, trigger-and-done, and pass-through
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 24 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.