NASAA Dishonest Practices: Compensation Provisions

What this video covers

• Why unfair pricing and unreasonable commissions trigger both state NASAA enforcement and federal fair-pricing penalties, not just one or the other
• The exact distinction between unfair pricing (transaction-based) and unreasonable service fees (non-transaction services like custody, transfers, and appraisals)
• The three required elements of churning: excessive trading, control over the account, and intent to generate commissions rather than serve the customer
• Why high turnover alone is never enough for churning without control, including de facto control when a client rubber-stamps recommendations
• Who an agent may legally split commissions with: other registered agents at the same broker-dealer or an affiliated firm under common control
• Why paying referral fees or finder's fees to unregistered persons is always a violation, even if that person never executes a trade or gives advice