Conflicts of Interest, Criminal Activities, and Other Ethics Issues: Rapid Fire
Chapters in this video
- 0:00 Agent bright lines: borrowing, sharing, and selling away
- 3:01 Universal antifraud and market manipulation tactics
- 4:45 Agency cross versus principal transaction rules
- 5:24 Vulnerable Adults Model Act: mandatory and permissive steps
- 6:01 Must-know numbers: 10, 65, 15, 25, and 0.25 percent
- 7:34 Churning without intent and rapid-fire exam recap
What this video covers
- Why the ban on an agent borrowing from or lending to a customer is absolute: no exceptions for family, banks, or any relationship whatsoever
- The two written consents required for an agent sharing in a customer account, and why FINRA proportionality is not part of the state law test
- The difference between prior written consent from the employer versus mere notice to the executing firm for outside securities accounts
- Why selling away requires written pre-approval before execution, and why verbal approval is worthless
- How the universal antifraud provision reaches any person regardless of registration status, needs no proven intent, and treats half-truths as equal to lies
- The distinctions among wash trades, matched orders, painting the tape, front-running, spoofing, and layering
- Why agency cross allows prospective written consent but principal transactions demand fresh written disclosure and consent before each transaction
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