Employee conduct, registration, communications, supervision
**FINRA Rule 2010 — Standards of Commercial Honor:** each member shall observe high standards of commercial honor and just and equitable principles of trade. This catch-all underpins most ethics enforcement.
**Registration categories (after passing the SIE):** • **Series 6** — investment company/variable contract products. • **Series 7** — General Securities Representative (broadest). • **Series 22** — DPPs. • **Series 79** — investment banking. • **Series 82** — private securities offerings. • **Principal series** — 9/10, 24, 26, 27 (FinOp), 39, 51, 52, 53 (muni principal). • **State**: Series 63 (Uniform Securities Agent State Law), Series 65 (IAR), Series 66 (combined).
**Form U4 / U5:** U4 is filed at registration; U5 when terminated (within 30 days, amended within 30 days of learning of a fact). 'Disclosure events' (bankruptcies, customer complaints > $5K, criminal matters, civil judgments, regulatory actions) require amendment within 30 days.
**Continuing education (FINRA Rule 1240):** Regulatory Element annually (was every 3 years) and Firm Element at least annually based on a needs analysis.
**Communications with the public (FINRA Rule 2210):** • **Retail communication** — to 25+ retail investors in 30 days; principal approval required before use; may need FINRA filing. • **Correspondence** — to 25 or fewer retail in 30 days. • **Institutional** — only to institutional investors.
Prohibited claims: guarantees, predictions of specific performance, misleading comparisons, omissions of material facts.
**Supervision (Rule 3110):** each member shall establish and maintain a written supervisory system; designate principals; annual compliance meeting; review of correspondence; branch inspections (annual for OSJs, at least every 3 years for non-branch locations).