Sales Practices

This covers FINRA and SEC rules for broker-dealer conduct, focusing on violations like churning, breakpoint abuse, selling away, and unauthorized trading. It explains the three-element test for churning (control, excessive activity, scienter) with specific metrics like turnover ratios above 6 and cost-to-equity over 20%. You'll also get guidance on mutual fund breakpoint requirements, Rule 3280 for private securities transactions, and senior investor protections. The source material walks through Rule 2010's ethical catch-all and Rule 2020's antifraud provisions. Useful when you need to evaluate whether a broker's conduct crosses regulatory lines or when designing supervisory procedures to prevent violations.

Install to Claude Code

npx -y skills add joellewis/finance_skills --skill sales-practices --agent claude-code