sales-practices
Sales Practices
Purpose
Provides comprehensive guidance on FINRA and SEC rules governing the conduct of broker-dealers and their associated persons in securities sales activities. Covers ethical standards, prohibited practices, supervision requirements, and specialized rules for vulnerable investors and complex products. This skill enables identification of sales practice violations and the regulatory framework for enforcement.
Layer
9 — Compliance & Regulatory Guidance
Direction
prospective
When to Use
- Evaluating whether a broker's trading activity constitutes churning or excessive trading
- Assessing whether mutual fund breakpoint discounts were properly applied
- Determining if an associated person engaged in selling away or unapproved private securities transactions
- Reviewing outside business activity disclosures and firm obligations
- Evaluating supervisory procedures and whether a firm met its supervision obligations
- Analyzing potential market manipulation, marking the close, or other deceptive practices
- Investigating unauthorized trading in customer accounts
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