Series 6 Laws/Rules

FINRA rule 3170

hiring reps from disciplined firms requires phone taping of all registered reps

Level A: 5-9 reps, 40% disciplined

Level B: 10-19 reps, 4 disciplined

Level C: 20+ reps, 20% disciplined

FINRA rule 5310

best execution - must find best terms for customer

FINRA rule 2273

transferring accounts to new firm requires disclosure of BD compensation and all moving fees/expenses. must provide educational materials. Lasts for 3 months after broker goes to new firm

FINRA Rule 2330

establishes suitability, principal review, and supervisory requirements for BDS when they recommend deferred variable annuities

FINRA Rule 2111

firms/reps "must have a reasonable basis to believe" that investment is suitable.

FINRA Rule 3210

associated person must obtain written consent from employer to open an account at another firm. Employer must monitor their accounts. Associated person must notify the firm in writing that they are associated with a member firm. New firm must be able to provide duplicate copies of trade confirmations/account statements to employer

FINRA rule 2090

know your customer. Know their financial situation and nonfinancial needs

Securities Act of 1933

Primary market - full and fair disclosure, registration, prospectus

Securities Exchange Act of 1934

created SEC, SEC regulates secondary market

Investment Company Act of 1940

protects investors by regulating investment companies. Must register with SEC

Insider Trading act of 1988

increased penalties for insider tradin

Employee Retirement Income Security Act of 1974 (ERISA)

created IRAs

Reg D Rule 506

private placements only allow advertising and solicitation if only accredited investors can invest

Uniform Practice Code

set by FINRA, uniform trading practices

Conduct Rules

set by FINRA, for making recommendations