Conflicts of Interest, Impermissible Activities, and Ethics

What this video covers

• The three narrow exceptions for investment advisers (IAs) borrowing from clients (broker-dealer, affiliate, or financial institution actually in the business of loaning funds), and why broker-dealer (BD) agents have zero exceptions
• How profit-sharing rules differ between BD agents (proportionate financial contribution, dual written authorization) and IAs (performance-based fee structure limited to qualified clients)
• Why client confidentiality points outward only, and why withholding a client's own information from the client is a classic exam trap
• Why trading on material nonpublic information is prohibited regardless of whose account benefits, and what written policies investment advisers must maintain
• The definition of access persons, their 10-day initial holdings report deadline, and the pre-clearance requirement for initial public offerings (IPOs) and limited offerings
• What churning is and how cost-to-equity or turnover ratios identify it as an anti-fraud violation
• The mandatory reporting and permissive hold workflow for suspected exploitation of eligible adults, including the 15-business-day hold limit and safe harbor immunity requirements