Best Interest and Suitability: Rapid Fire

What this video covers

• Why the first step is always picking the standard: Regulation Best Interest for retail customers, the suitability rule for everything else, and why the two never overlap
• How a natural person can still fall under the suitability rule when the account is for business purposes, and the magic phrase "personal, family, or household purposes" that triggers Regulation Best Interest
• What the institutional exemption actually removes (only customer-specific suitability) and why reasonable-basis and quantitative suitability survive, plus the agent-delegation gotcha
• How the care obligation's three-step dance works, and why the "does not place its own interest ahead" clause attaches only to steps two and three, not step one
• Why the conflict of interest obligation requires a firm to establish, maintain, and enforce policies, and what must happen to sales contests and quotas tied to specific securities
• The distinction between quantitative suitability and churning: excess plus unsuitability with no control, versus intent to generate commissions plus control
• How fair pricing changes based on the hat Riley wears: fair price weighing profit entitlement as principal, fair commission weighing service value as agent
• Why the 5% Mark-Up Policy is a guide not a rule, and the strict conjunctive test for the exclusion: required prospectus or offering circular and a fixed public offering price