Sanctions, Misrepresentation, and SIPC

What this video covers

• Why failure to supervise is a standalone basis for sanctions, and how a principal's ignorance of a representative's violation does not protect the firm
• The four SEC administrative sanctions against broker-dealer registrations (censure, limitations, suspension, revocation) and the 12-month hard ceiling on suspensions
• The 10-year conviction lookback as a hard cliff (not a sliding scale), and which crimes trigger it
• Why a bar applies to an associated person while revocation applies to a firm, and the breadth of "associated persons" beyond registered representatives
• The misrepresentation-of-registration prohibition: what a broker-dealer may and may not say about SEC or self-regulatory organization (SRO) approval, and why a disclaimer cannot cure a misleading claim
• SIPC membership rules, the four statutory exceptions, and why SIPC covers missing assets from firm failure but not market losses or bad investment advice
• The $500,000 total customer protection limit with its $250,000 cash sub-limit, and how the limits apply when a customer holds both cash and securities
• The life-of-the-enterprise retention requirement for organizational records, and why it survives mergers and outlasts standard 3-year or 6-year rules