Other Prohibited Activities

What this video covers

• Why antifraud provisions apply to any person, any security, and any transaction, with no exemption loophole
• How a half-truth, where every word is literally true, still counts as a prohibited misrepresentation without full context
• Why broker-dealers (BDs) cannot guarantee against loss and investment advisers (IAs) cannot guarantee a specific result, in any form: written, oral, or implied
• The three and only three ways a transaction is legally authorized: specific customer authorization, valid written discretionary agreement, or unsolicited customer-initiated order
• Why the time/price exception lets a professional decide when and at what price to execute, but written discretionary authority is required before the first trade if the professional decides what to buy or sell
• How creating a fictitious account is an independent violation separate from the underlying prohibited trade it facilitates
• Why commission splitting with any unregistered person is prohibited even for legitimate referrals, and when oral disclosure of a control relationship must be supplemented with written disclosure