3. Ethical and Professional Standards

In this section

• 3.1 FINRA Code of Conduct and Ethics
  • Standards of Commercial Honor in Securities Industry
    Explore the Standards of Commercial Honor under FINRA Rule 2010, emphasizing ethical practices and integrity in the securities industry. Learn about scenarios that may violate these standards and the importance of maintaining high ethical standards in all business dealings.
  • Just and Equitable Principles of Trade
    Explore the Just and Equitable Principles of Trade in the securities industry, focusing on ethical standards, examples of unethical practices, and regulatory expectations.
• 3.2 Suitability Obligations
  • Know Your Customer (KYC) Rule in Securities Exams
    Master the Know Your Customer (KYC) Rule for the Series 6 Exam. Understand the importance of obtaining and updating essential customer information to ensure compliance with FINRA Rule 2090.
  • Reasonable-Basis Suitability: Understanding FINRA Rule 2111 for Series 6 Exam Success
    Master the concept of Reasonable-Basis Suitability under FINRA Rule 2111 for the Series 6 Exam. Learn about the importance of due diligence, understanding investment products, and ensuring recommendations are suitable for investors.
  • Customer-Specific Suitability in Securities Recommendations
    Explore the intricacies of customer-specific suitability in securities recommendations, focusing on aligning investment advice with individual client profiles. Learn about the factors influencing suitability, examples of unsuitable recommendations, and the importance of compliance with FINRA rules.
  • Quantitative Suitability in Securities Trading: Ensuring Ethical Practices and Compliance
    Explore the essential principles of quantitative suitability in securities trading, focusing on ethical obligations, indicators of excessive trading, and regulatory compliance. This comprehensive guide is designed to help you understand and apply quantitative suitability standards in the securities industry.
• 3.3 Unethical Business Practices
  • Misrepresentations and Omissions in Securities Transactions
    Explore the critical importance of honesty and transparency in securities transactions, focusing on misrepresentations and omissions. Learn how to identify and avoid unethical practices to ensure compliance with regulatory standards.
  • Fraudulent Activities in the Securities Industry
    Explore fraudulent activities in the securities industry, including types of fraud, legal consequences, and regulatory actions by the SEC and FINRA.
  • Unapproved Communications in Securities: Understanding Compliance and Best Practices
    Master the intricacies of unapproved communications in the securities industry with our comprehensive guide. Learn about principal approval, prohibited practices, and compliance with firm policies to excel in the Series 6 Exam.
• 3.4 Anti-Money Laundering (AML)
  • Bank Secrecy Act (BSA): Comprehensive Guide for Series 6 Exam
    Explore the Bank Secrecy Act (BSA), the cornerstone of Anti-Money Laundering (AML) regulations in the U.S., essential for the Series 6 Exam. Understand financial institutions' obligations, including recordkeeping and reporting requirements, and the role of FinCEN in BSA compliance.
  • USA PATRIOT Act Requirements for Anti-Money Laundering Compliance
    Explore the USA PATRIOT Act's requirements for Anti-Money Laundering (AML) compliance, focusing on customer identification, due diligence, and monitoring suspicious activities.
  • Suspicious Activity Reporting (SAR) in Anti-Money Laundering (AML)
    Explore the critical role of Suspicious Activity Reporting (SAR) in Anti-Money Laundering (AML) efforts. Understand the requirements, processes, and confidentiality obligations for financial institutions in detecting and reporting suspicious transactions.
• 3.5 Insider Trading and Confidentiality
  • Insider Trading Provisions
    Master the intricacies of insider trading provisions for the Series 6 Exam. Understand illegal insider trading, legal implications, and the roles of tippers and tippees with real-world examples and regulatory insights.
  • Chinese Walls (Information Barriers) in Securities Firms
    Explore the critical role of Chinese Walls in preventing insider trading and maintaining confidentiality within securities firms. Learn about the policies, procedures, and responsibilities involved in enforcing these information barriers.
• 3.6 Privacy of Consumer Financial Information (Regulation S-P)
  • Privacy Notices: Understanding Regulation S-P Requirements for Securities Professionals
    Learn about the crucial role of privacy notices under Regulation S-P in safeguarding consumer financial information, including delivery timelines and required content.
  • Opt-Out Provisions: Understanding Consumer Rights in Financial Privacy
    Explore the opt-out provisions under Regulation S-P, detailing consumer rights, firm responsibilities, and exceptions in sharing non-public personal information.
• 3.7 Professional Conduct and Conflicts of Interest
  • Understanding Gifts and Gratuities in the Securities Industry
    Explore the intricacies of gifts and gratuities regulations in the securities industry, focusing on FINRA Rule 3220. Learn about limitations, recordkeeping requirements, and exceptions to ensure compliance and maintain professional integrity.
  • Outside Business Activities: Understanding FINRA Rule 3270 and Compliance Requirements
    Explore the complexities of Outside Business Activities (OBA) in the securities industry, focusing on the requirements, potential conflicts, and firm policies for compliance. Dive into FINRA Rule 3270 to ensure ethical and professional standards are met.
  • Private Securities Transactions: Understanding FINRA Rule 3280 and Compliance Requirements
    Explore the intricacies of private securities transactions, often referred to as 'selling away,' within the context of FINRA Rule 3280. Learn about compliance requirements, the necessity of prior written notice, firm supervision, and recordkeeping responsibilities.
  • Compensation Disclosure in Securities: Understanding Requirements and Best Practices
    Explore the comprehensive guide to compensation disclosure in the securities industry, focusing on requirements, conflict of interest situations, and the importance of transparency and honesty.