Sales Practices

This covers FINRA and SEC rules for broker-dealer conduct, focusing on violations like churning, breakpoint abuse, selling away, and unauthorized trading. It explains the three-element test for churning (control, excessive activity, scienter) with specific metrics like turnover ratios above 6 and cost-to-equity over 20%. You'll also get guidance on mutual fund breakpoint requirements, Rule 3280 for private securities transactions, and senior investor protections. The source material walks through Rule 2010's ethical catch-all and Rule 2020's antifraud provisions. Useful when you need to evaluate whether a broker's conduct crosses regulatory lines or when designing supervisory procedures to prevent violations.

skills.sh installs: 680
GitHub stars: 224
last updated: Aug 21, 2026

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Install

$ npx -y skills add joellewis/finance_skills --skill sales-practices --agent claude-code

Installs into .claude/skills of the current project.

Files

Sales Practices

Regulatory status current as of June 2026 — verify effective dates, dollar thresholds, and pending rulemakings against current SEC/FINRA/FinCEN sources before advising.

Core Concepts

FINRA Rule 2010 — Standards of Commercial Honor

FINRA Rule 2010 is the catch-all ethical standard for all member firms and associated persons. It requires adherence to "high standards of commercial honor and just and equitable principles of trade." This rule is intentionally broad and serves as the basis for disciplinary action even when no other specific rule is violated. Conduct that is unethical, dishonest, or in bad faith — even if technically legal — can be sanctioned under Rule 2010. FINRA enforcement frequently pairs Rule 2010 with more specific rule violations as a supplementary charge. Examples of standalone Rule 2010 violations include forgery, misrepresentation of credentials, conversion of client funds, and failure to disclose material information.

SKILL.md on GitHub