Other Prohibited Activities

What this video covers

• Why a half-truth still violates antifraud rules even when every word is literally true, and how material omissions create the same liability
• The two forms of prohibited guarantees: broker-dealers cannot guarantee against loss, while investment advisers cannot guarantee specific results
• The time/price exception to discretionary authority, and why choosing "what" to buy always requires written authority while choosing "when" and "at what price" does not
• The critical 10-business-day grace period for investment advisers to obtain written discretionary authority after an oral discretionary trade, and why broker-dealers get zero days
• Why creating a fictitious account is an independent violation separate from any underlying prohibited transaction it facilitates
• When commission splitting is prohibited, the strict conditions for paying a retiring representative, and the narrow foreign finder exception
• The duty to promptly pay final arbitration awards and regulatory penalties, and why this rule applies only to broker-dealers and agents, not investment advisers
• Why the National Association of Securities Administrators (NASAA) list of prohibited activities is a floor, not a ceiling, and unlisted crimes still bring enforcement action