Private Securities Transactions
Securities transactions a rep effects OUTSIDE the scope of their firm — 'selling away.' The rep must give prior written notice; if compensated, the firm must give written APPROVAL and supervise the trades on its books.
Selling away usually surfaces with private placements and promissory notes marketed to the rep’s own customers. The firm cannot supervise what it cannot see — which is exactly why undisclosed PSTs are treated harshly.