Ethical Practices and Fiduciary Obligations: Rapid Fire

What this video covers

• Why an investment adviser owes a strict fiduciary duty (duty of care plus duty of loyalty) while a broker-dealer owes suitability, and why this duty can never be waived by the client
• What creates custody versus mere discretion, and why deducting advisory fees directly from the account is a custody trigger many test takers miss
• How the AAA rule separates discretionary authority (asset, action, or amount) from non-discretionary time-and-price instructions
• When soft dollars are permissible under the safe harbor (research and brokerage services) and why best execution always overrides the perk incentive
• The six strict conditions for agency cross transactions, especially the exam trap that no dual recommendation is allowed (at least one side must be unsolicited)
• The minimum net worth thresholds ($35,000 with custody, $10,000 with discretion only), qualified client standards ($1.4 million assets under management or $2.7 million net worth excluding primary residence), and other must-know numbers
• Why commingling is an instant violation with no loss required, why structuring is a standalone crime even with clean money, and which prohibited practices top the exam hit list