Carrying Agreements
Chapters in this video
- 0:00 Introducing Ollie and Carla: the carrying agreement setup
- 1:12 The carrying agreement as a responsibility map
- 2:44 The magnetized desk: why accountability never transfers
- 3:24 Fully disclosed accounts and the carrying firm's two non-negotiable duties
- 4:38 Delegating statement prep without transferring responsibility
- 5:37 What the customer notice actually tells Carla the client
- 6:29 Rapid-fire exam recap
What this video covers
- What a carrying agreement is, and why it functions as a responsibility map rather than a chore chart
- The critical distinction between the firm performing a function and the firm holding regulatory accountability for that function
- Why a firm cannot contract away its assigned regulatory obligations simply because another firm does the physical work
- The two non-negotiable duties assigned to the carrying firm for fully disclosed accounts: safeguarding customer funds and securities, plus preparing and transmitting account statements
- How an introducing firm may prepare or transmit account statements on behalf of the carrying firm, and why authorization does not transfer accountability
- What the fully disclosed customer must receive in writing, and why the notice covers responsibility allocation rather than performance details
- The most common exam trap: assuming that doing the work equals owning the regulatory risk
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 99 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.