NASAA Dishonest Practices - Broker-Dealers and Agents
Chapters in this video
- 0:00 The golden rule: high standards of commercial honor
- 1:56 Pattern delays versus churning relative to resources
- 3:29 Unauthorized discretion and the time-price exception
- 4:37 Control relationship disclosure sequence and loss guarantees
- 5:30 Selling away versus sharing accounts dual authorization
- 6:35 The absolute agent lending ban with zero exceptions
- 7:33 Rapid-fire exam recap
What this video covers
- The broad "high standards of commercial honor and just and equitable principles of trade" standard, and why the prohibited practices list is not exhaustive
- How churning is judged relative to client financial resources and account character, not by a fixed number of trades
- The unauthorized discretion rule and its sole exception: discretion limited to time and price only
- The two-step control relationship disclosure timeline: oral or written before the contract, then written at or before completion
- Why guaranteeing a customer against loss is prohibited in any form: written, oral, or implied
- The dual authorization requirement for sharing in customer accounts versus single firm pre-approval for selling away
- The absolute prohibition on agents borrowing from or lending to customers, with zero exceptions even for financial institutions or family members
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.