Hold Recommendations and Strategy Recommendations
Chapters in this video
- 0:00 The three massive regulatory questions
- 1:00 Cora and Rita: unsolicited purchase, then hold advice
- 2:40 The current profile controls, not the purchase-day profile
- 3:02 Sam reviews Rita's dollar-cost averaging email
- 4:01 The three safe harbors versus the wall
- 4:48 Safe harbor #1: general financial and investment information
- 5:25 Safe harbors #2 and #3: generic models and interactive tools
- 6:22 Naming a security blows up the safe harbor
- 6:49 Rapid-fire exam recap
What this video covers
- Why an explicit hold recommendation is an affirmative investment decision that triggers the three-layer suitability analysis, even when the original purchase was unsolicited
- How a customer's current profile, not the profile at purchase, governs whether a hold recommendation today has a reasonable basis
- Why strategy recommendations such as dollar-cost averaging (DCA), sector rotation, laddering, or asset allocation trigger the suitability rule without any named security
- The three safe-harbor categories carved out as pure education: general financial and investment information, generic asset-allocation models, and interactive investment tools
- How naming a specific security or urging a specific action instantly destroys safe-harbor protection and creates a regulated recommendation
- The exact boundary lines exam writers exploit, including the supervisor-review scenario and the casual fund-name drop at the end of generic education
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 6 course also includes adaptive practice questions and spaced-repetition flashcards.