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General ledgers must be retained for 6 years under SEC Rule 17a-4. These ledgers are essential financial records reviewed during audits.

Front running is when a rep trades before a large client order to benefit from expected price changes. It is prohibited under FINRA Rule 5270.

Rule 2020 prohibits the use of manipulative, deceptive, or fraudulent devices in securities transactions. This broad rule supports fair market practices.

Supervisors must review and investigate complaints promptly. Misleading communications may violate FINRA Rule 2210. Even without financial loss, misleading information is a regulatory violation that must be corrected.

Insider trading is a serious violation of federal securities laws (Rule 10b-5). A supervisor who becomes aware must escalate and file a Suspicious Activity Report (SAR) if suspicious activity is confirmed. Ignoring or approving such trades would expose the firm to liability. SAR filings help regulators detect market abuse and protect market integrity.