THE LAW OF BROKER-DEALER OPERATIONS
This law course, titled “The Law of Broker-Dealer Operations,” provides a comprehensive examination of the legal and regulatory framework governing the operations of broker-dealers in the United States. The course will cover relevant laws, regulations, and rules that impact the daily operations and conduct of broker-dealers and their associated persons. Through a combination of lectures, case studies, and discussions, students will gain an in-depth understanding of broker-dealer registration, licensing, compliance, sales practice, customer protection, enforcement, and emerging trends in the securities industry.
Course Objectives:
Upon successful completion of this course, students will be able to:
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Understand the role and responsibilities of broker-dealers in the securities industry and the regulatory framework governing their operations.
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Analyze and apply the key laws, regulations, and rules impacting broker-dealers, including the Securities Exchange Act of 1934, Dodd-Frank Act, and Regulation Best Interest.
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Demonstrate knowledge of broker-dealer registration, licensing, and membership requirements with the SEC, FINRA, and state regulators.
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Assess the operational and compliance aspects of broker-dealer activities, including trading systems, order execution, clearing, books and records, and supervision.
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Evaluate sales practice and conduct rules, including suitability, fiduciary duties, disclosure requirements, and regulation of advertising, sales literature, and communications.
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Analyze and apply the principles of Regulation Best Interest (Reg BI) and understand its impact on broker-dealer operations and investor protection.
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Understand the legal and regulatory framework governing insider trading, market manipulation, and customer protection rules.
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Evaluate the importance of cybersecurity and data privacy in broker-dealer operations and analyze the relevant regulatory guidelines and enforcement actions.
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Analyze enforcement and disciplinary actions involving broker-dealers and understand the roles of the SEC, FINRA, and state regulators in enforcement.
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Identify emerging trends and regulatory developments in the securities industry, including the impact of fintech, cryptocurrencies, and digital assets.
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Apply ethical principles and best practices in the context of broker-dealer operations, managing conflicts of interest, and promoting investor protection.