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Churning involves excessive trading for commissions rather than client benefit. Supervisors must review account activity to detect high turnover ratios and red flags.

Broker-dealers must amend Form BD annually to update firm information such as ownership, business lines, and supervisory structure. This ensures FINRA and the SEC have accurate, up-to-date information on the firm’s activities. Form CRS applies to retail client disclosures, Form ADV applies to investment advisers, and compliance certifications are internal. Keeping Form BD current is essential to regulatory oversight and transparency.

Selling away occurs when a rep engages in securities transactions outside the firm without approval. Supervisors must monitor and prevent such conduct.

Prior to 2022, the Regulatory Element CE was required every 3 years. Starting January 1, 2023, FINRA made CE annual to ensure reps stay current with industry changes.

Rule 5210 prohibits false trades or marking the close, where transactions are executed to manipulate closing prices. This undermines market integrity.