Putting It Together: Rule Comparison at a Glance

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Chapters in this video

  1. 0:00 Three rules, one firm: the supervisory machine
  2. 0:47 The supervision rule builds the system
  3. 1:56 Matching actors to approvals: Series 26 versus Series 51 or 53
  4. 3:32 The general new account signature trap
  5. 5:05 Handling customer checks and the 12 noon deadline
  6. 5:58 Rapid-fire exam recap

What this video covers

  • Building the supervisory system versus testing the supervisory system, and which rule does which
  • Why a Series 26 principal can approve mutual funds and variable contracts but is locked out of 529 plan approvals
  • When a Series 51 or Series 53 principal is required for municipal fund securities including 529 plans, Local Government Investment Pools (LGIPs), and Achieving a Better Life Experience (ABLE) accounts
  • Who actually signs the general new account record (partner, officer, or manager) versus who approves account changes and discretionary orders (registered principal)
  • The strict separation between representatives who obtain approvals and principals who give them, and why self-approval breaks the machine
  • Why customer checks must be payable to the issuer, never to the broker-dealer or representative, and the 12 noon next business day transmission deadline
  • How the three supervisory rules form a stack, not a menu, and why satisfying one never substitutes for the others

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