Selling Away
Chapters in this video
- 0:00 Selling away: the textbook definition
- 0:43 Aaron and Iris: the legitimate day job versus the shady side hustle
- 1:44 Why regulators hate it: the five-star kitchen versus trunk meat analogy
- 2:48 The golden written exception: three rigid steps
- 3:37 Knowledge check: the verbal authorization trap
- 4:55 Rapid-fire exam recap
What this video covers
- The precise definition of selling away: transactions not recorded on the regular books or records of the employing broker-dealer
- Why off-the-books trades escape supervisory review, compliance oversight, and customer protections
- How selling away becomes a vector for fraud and unsuitable investments when broker-dealers cannot monitor what they cannot see
- The three rigid requirements for the written exception: authorization from the broker-dealer, in writing, and obtained prior to execution
- Why verbal authorization from a supervisor is never sufficient, even when the supervisor enthusiastically approves the idea
- The exam bait scenario: Aaron calls his boss, gets a go-ahead by phone, and executes the trade for Iris (still selling away)
- The clear visual distinction between written prior authorization (legal) and verbal authorization (violation) for test day recall
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 63 course adds adaptive practice questions and spaced-repetition flashcards.