Ethics - Fraud, Forgery and Other Failings


Ethics in the securities industry arises out of specific rules and common law decisions relating to the conduct of registered individuals. FINRA publishes its disciplinary actions monthly, giving a clear overview of the industry’s view of ethics.

At the beginning of 2023, the SEC proposed amendments to its ethics rules to strengthen and modernize its ethics compliance program. The proposed amendments were for SEC employees, but they reflect the growing concern in the securities industry that appropriate ethical practices from securities industry registrants will help build investors' trust and encourage participation in the industry. 

Learning Objectives

This course will first examine the ethical duties of registered individuals in general and then review instances of fraud, forgery, and other ethical failings.

Upon conclusion of this course, you should:

  • understand the general ethical duties applicable to securities industry registrants.
  • understand the rules applicable to ethical conduct in the securities industry.
  • be familiar with disciplinary and legal actions taken against securities industry registrants for ethical lapses.
  • understand the potential penalties for ethical lapses in the securities industry.
  • understand how these products can fulfill the need for asset accumulation and income distribution.

Designed For

Registered Representatives 

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License or Certification