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Firms must file Form U5 within 30 days of termination. This filing discloses the circumstances of departure and protects future employers and investors by ensuring transparency. Late filings can result in regulatory penalties.

Excessive trading in a fee-based account without client benefit is called reverse churning. Supervisors must review accounts to detect this abuse.

Rule 3270 requires disclosure of outside business activities (OBAs) to the firm. Failure to disclose may create conflicts of interest and violates supervisory rules.

Form BD amendments must be filed when a broker-dealer’s ownership, control, or business lines change materially. Individual rep changes belong on Form U4/U5.

Insider trading occurs when material nonpublic information is misused for trading. Supervisors must implement policies to prevent dissemination of confidential information.