Outside Securities Accounts

What this video covers

• The exact two-step regulatory flow for outside accounts: prior written notice to the employing broker-dealer, then the firm's right to request duplicate confirmations and statements
• Why the employing broker-dealer monitors outside accounts: front-running detection, conflicts of interest, and the legal duty to supervise the agent
• The critical definitional separator between outside securities accounts and selling away: disclosure and authorization, not the mere existence of an account elsewhere
• How to dissect an exam scenario where an agent maintains a personal brokerage account at another firm and determine whether the activity is properly disclosed or constitutes selling away
• Why selling away is classified as a NASAA dishonest practice and is strictly prohibited without written authorization, while outside accounts are permitted with proper disclosure
• The supervision gap: how outside accounts allow firm oversight through duplicate statements, while selling away occurs entirely in the dark with zero oversight possible