Prohibited Activities and Conflicts of Interest: Rapid Fire

What this video covers

• Why agents may never borrow from, lend to, or act as custodian for a customer, with zero exceptions even for banks or family members
• The three elements of churning: control (actual or de facto), excessive activity relative to customer objectives and resources, and scienter (intent to defraud)
• How sharing in a customer account requires dual written consent from both the customer and the broker-dealer, plus proportionality to the agent's contribution, with only the proportionality requirement waived for family
• Why selling away requires written pre-approval before execution, and why oral approval or post-hoc notification will not cure the violation
• The 0.25% threshold that disqualifies a mutual fund from calling itself "no-load" when asset-based plus service fees exceed that figure
• The affirmative duty to proactively disclose breakpoints and letter-of-intent features even when the customer never asks
• The distinction between Regulation Best Interest (RegBI) for broker-dealers and the fiduciary duty for investment advisers as standards for managing conflicts