{"component": "clause", "props": {"groups": [{"size": 20, "snippet_links": [{"key": "excessive-trading", "type": "definition", "offset": [15, 32]}, {"key": "to-generate", "type": "definition", "offset": [40, 51]}, {"key": "of-securities", "type": "clause", "offset": [146, 159]}, {"key": "the-client", "type": "definition", "offset": [185, 195]}, {"key": "investment-objectives", "type": "definition", "offset": [198, 219]}, {"key": "evidence-of", "type": "clause", "offset": [240, 251]}], "samples": [{"hash": "90H7wI4Gx5R", "uri": "/contracts/90H7wI4Gx5R#churning", "label": "Client Agreement", "score": 31.5928173065, "published": true}, {"hash": "9kVw4ZAV0FL", "uri": "/contracts/9kVw4ZAV0FL#churning", "label": "Client Agreement", "score": 31.5768890381, "published": true}, {"hash": "9plN29pm7D0", "uri": "/contracts/9plN29pm7D0#churning", "label": "Client Agreement", "score": 31.0811500549, "published": true}], "snippet": "Churning means excessive trading aiming to generate commissions. While there is no quantitative measure for churning, frequent buying and selling of securities that does little to meet the client's investment objectives may be construed as evidence of churning.", "hash": "8b27272a759734742b4acdbdd601bc45", "id": 1}, {"size": 5, "snippet_links": [{"key": "contract-owner", "type": "clause", "offset": [51, 65]}, {"key": "insurance-contract", "type": "definition", "offset": [83, 101]}, {"key": "reasonable-grounds", "type": "definition", "offset": [144, 162]}, {"key": "the-contract", "type": "definition", "offset": [177, 189]}, {"key": "right-to-receive", "type": "clause", "offset": [254, 270]}, {"key": "compensation-under-this-agreement", "type": "clause", "offset": [275, 308]}], "samples": [{"hash": "lHGeEW1B6pk", "uri": "/contracts/lHGeEW1B6pk#churning", "label": "Selling Agreement (Travelers Fund Ul for Variable Life Insurance)", "score": 18.0, "published": true}, {"hash": "bYnun6L7VGA", "uri": "/contracts/bYnun6L7VGA#churning", "label": "Selling Agreement (Travelers Fund Ul for Variable Life Insurance)", "score": 18.0, "published": true}, {"hash": "2bIItgwK5uw", "uri": "/contracts/2bIItgwK5uw#churning", "label": "Selling Agreement (Travelers Fund Abd for Variable Annuities)", "score": 18.0, "published": true}], "snippet": "If Broker/Dealer induces or attempts to induce any Contract Owner to relinquish an Insurance Contract except under circumstances where there is reasonable grounds for believing the contract or certificate is not suitable for such person, Broker-Dealer's right to receive any compensation under this Agreement shall cease and terminate.", "hash": "b81c6cfe51d0d729a894fb66e667a1c1", "id": 2}, {"size": 4, "snippet_links": [{"key": "excessive-trading", "type": "definition", "offset": [0, 17]}, {"key": "to-generate", "type": "definition", "offset": [25, 36]}, {"key": "of-securities", "type": "clause", "offset": [110, 123]}, {"key": "the-client", "type": "definition", "offset": [165, 175]}, {"key": "investment-objectives", "type": "definition", "offset": [178, 199]}], "samples": [{"hash": "kcMK9Eo33US", "uri": "/contracts/kcMK9Eo33US#churning", "label": "User Agreement", "score": 33.3040008545, "published": true}, {"hash": "8yn51fYv5a3", "uri": "/contracts/8yn51fYv5a3#churning", "label": "User Agreement", "score": 31.8820514679, "published": true}, {"hash": "122sK2fnwTP", "uri": "/contracts/122sK2fnwTP#churning", "label": "User Agreement", "score": 31.0826950073, "published": true}], "snippet": "Excessive trading aiming to generate commissions. We consider evidence to include frequent buying and selling of securities indicating any intent other than meeting the client's investment objectives.", "hash": "1679ff5e7dc9ddcb49e688e218f8f25b", "id": 3}, {"size": 3, "snippet_links": [{"key": "selling-securities", "type": "definition", "offset": [23, 41]}, {"key": "to-generate", "type": "definition", "offset": [74, 85]}, {"key": "to-the-client", "type": "clause", "offset": [113, 126]}, {"key": "investment-objectives", "type": "definition", "offset": [129, 150]}], "samples": [{"hash": "500mhTYGXyW", "uri": "/contracts/500mhTYGXyW#churning", "label": "Service Agreement", "score": 34.1842536926, "published": true}, {"hash": "bSp1BnEZdze", "uri": "/contracts/bSp1BnEZdze#churning", "label": "Service Agreement", "score": 34.1083831787, "published": true}, {"hash": "5yz4kHviwSz", "uri": "/contracts/5yz4kHviwSz#churning", "label": "Service Agreement", "score": 34.0893745422, "published": true}], "snippet": "Excessively buying and selling securities in a client's account primarily to generate commissions without regard to the client\u2019s investment objectives.", "hash": "c9be5c1dc41aaf9fbcef4b1763968878", "id": 4}, {"size": 3, "snippet_links": [{"key": "buy-and-sell-orders", "type": "clause", "offset": [26, 45]}, {"key": "additional-investors", "type": "definition", "offset": [119, 139]}, {"key": "the-price", "type": "clause", "offset": [154, 163]}], "samples": [{"hash": "llvDVNcT7qe", "uri": "/contracts/llvDVNcT7qe#churning", "label": "Agreement for the Provision of Investment Services", "score": 32.6119117737, "published": true}, {"hash": "eBY272uu89B", "uri": "/contracts/eBY272uu89B#churning", "label": "Agreement for the Provision of Investment Services", "score": 27.7446956635, "published": true}, {"hash": "4NhUBp9Iyx6", "uri": "/contracts/4NhUBp9Iyx6#churning", "label": "Investment Services Agreement", "score": 26.7576999664, "published": true}], "snippet": "when a trader places both buy and sell orders at about the same price. The increase in activity is intended to attract additional investors, and increase the price.", "hash": "bd3e673ca359aacdfbeb857ae24fbb2b", "id": 5}, {"size": 3, "snippet_links": [{"key": "right-to-monitor", "type": "clause", "offset": [23, 39]}, {"key": "the-activities", "type": "clause", "offset": [40, 54]}, {"key": "not-limited", "type": "clause", "offset": [208, 219]}, {"key": "payments-of", "type": "definition", "offset": [233, 244]}, {"key": "without-notice", "type": "definition", "offset": [280, 294]}, {"key": "excessive-trading", "type": "definition", "offset": [324, 341]}, {"key": "discretionary-account", "type": "definition", "offset": [347, 368]}, {"key": "a-person", "type": "clause", "offset": [372, 380]}, {"key": "for-the-purpose-of", "type": "definition", "offset": [411, 429]}, {"key": "the-interests", "type": "clause", "offset": [472, 485]}, {"key": "the-client", "type": "definition", "offset": [489, 499]}], "samples": [{"hash": "6XoVidAEI70", "uri": "/contracts/6XoVidAEI70#churning", "label": "Client Agreement", "score": 33.3492965698, "published": true}, {"hash": "kxx5VfF8MDo", "uri": "/contracts/kxx5VfF8MDo#churning", "label": "Client Agreement", "score": 33.2344474792, "published": true}], "snippet": "Tradeview reserves the right to monitor the activities of all counterparties and to take such measures as it deems necessary to discourage counterparties from churning or over-trading accounts, including but not limited to canceling payments of rebates and or/commissions with or without notice. Churning/over-trading means excessive trading of a discretionary account by a person with control over the account for the purpose of generating commissions while disregarding the interests of the Client.", "hash": "904c5b3d57bc64ad379cfb83e9ba790c", "id": 6}, {"size": 2, "snippet_links": [{"key": "offering-of-securities", "type": "clause", "offset": [146, 168]}, {"key": "the-customer", "type": "clause", "offset": [194, 206]}, {"key": "confirmation-of", "type": "clause", "offset": [254, 269]}], "samples": [{"hash": "5UWV1jmDjcC", "uri": "/contracts/5UWV1jmDjcC#churning", "label": "Client Agreement", "score": 24.5824775696, "published": true}, {"hash": "7VMQNHnj9N7", "uri": "/contracts/7VMQNHnj9N7#churning", "label": "Client Agreement", "score": 23.6543464661, "published": true}], "snippet": "Churning means over the top trading planning to create commissions. While there is no quanquantitative measure for stirring, visit purchasing and offering of securities that does little to meet the customer's speculation targets might be ununderstood as confirmation of agitating.", "hash": "5f0462d8529d6a2e3fcb4b6a9cf9d3ee", "id": 7}, {"size": 1, "snippet_links": [{"key": "a-booking", "type": "definition", "offset": [5, 14]}, {"key": "based-on", "type": "clause", "offset": [220, 228]}, {"key": "number-of-passengers", "type": "clause", "offset": [236, 256]}, {"key": "an-example", "type": "clause", "offset": [287, 297]}], "samples": [{"hash": "5fmWuMOgxyn", "uri": "/contracts/5fmWuMOgxyn#churning", "label": "GDS Reseller Agreement", "score": 21.3497600555, "published": true}], "snippet": "When a booking is created those results in a PNR, the PNR is allowed to be changed 3 times without it costing the airline any money. However when it is changed more than 3 times then the airline charges fee to Brightsun based on USD4 x number of passengers x number of segments changed. An example is the following booking; the inbound has been changed 3 times \u2013 on the fourth time the inbound is changed it will cost the airline through the following formula USD 4 x 3 passengers x 2 segments changed = USD24\n1. 1TEST/AMR 2.1TEST/BMRS 3.1TEST/AMSTR*P- C09 1. CA 856 Y 23FEB \u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587 2025 #1445 O 2. CA 173 Y 24FEB PEKSYD HS1 1700 #0740 O 3. CA 174 Y 23MAR \u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587 2040 #0530 O", "hash": "43f00c0a8d04ce3e48fe70c0b726a99d", "id": 8}, {"size": 1, "snippet_links": [{"key": "a-member", "type": "definition", "offset": [0, 8]}, {"key": "approved-trader", "type": "definition", "offset": [10, 25]}, {"key": "registered-representative", "type": "clause", "offset": [29, 54]}], "samples": [{"hash": "hWLenURUX0i", "uri": "/contracts/hWLenURUX0i#churning", "label": "Terms of Business", "score": 21.3066387177, "published": true}], "snippet": "A Member, Approved Trader or Registered Representative is prohibited from churning or generating commissions through creating excessive transactions in a Customer\u2019s Account.", "hash": "e2857c04495e5685733bb0a1101d6cd2", "id": 9}, {"size": 1, "snippet_links": [{"key": "excessive-trading", "type": "definition", "offset": [0, 17]}, {"key": "to-generate", "type": "definition", "offset": [18, 29]}, {"key": "investment-objectives", "type": "definition", "offset": [61, 82]}], "samples": [{"hash": "7K7PQaiQWuK", "uri": "/contracts/7K7PQaiQWuK#churning", "label": "User Agreement", "score": 36.2019461604, "published": true}], "snippet": "Excessive trading to generate commissions without regard for investment objectives.", "hash": "dc668ab7ec8fa4c6cbb4f3883bea0bff", "id": 10}], "next_curs": "ClESS2oVc35sYXdpbnNpZGVyY29udHJhY3Rzci0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhFjaHVybmluZyMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"children": [["", ""], ["adm", "ADM"], ["authorised-agent", "Authorised Agent"]], "size": 45, "title": "Churning", "parents": [["unauthorised-activities", "Unauthorised Activities"], ["unauthorized-activities", "UNAUTHORIZED ACTIVITIES"], ["definitions", "Definitions"], ["arbitration", "Arbitration"], ["prohibited-actions-on-the-platform", "PROHIBITED ACTIONS ON THE PLATFORM"]], "id": "churning", "related": [["logging", "Logging", "Logging"], ["load-shedding", "Load Shedding", "Load Shedding"], ["loading", "Loading", "Loading"], ["evacuation", "Evacuation", "Evacuation"], ["freezing", "Freezing", "Freezing"]], "related_snippets": [], "updated": "2025-07-17T06:09:22+00:00", "also_ask": ["What key elements must be included to clearly define and prohibit churning?", "How can the clause be tailored to address both intentional and negligent churning?", "What are the most common loopholes or ambiguities that weaken churning clauses?", "How do courts typically interpret and enforce churning provisions in disputes?", "How does this clause compare to industry standards or regulatory definitions of churning?"], "drafting_tip": "Define 'churning' precisely to avoid ambiguity; specify prohibited actions to ensure enforceability; outline consequences to deter violations.", "explanation": "The Churning clause is designed to prohibit or regulate the excessive buying and selling of securities within an investment account by a broker for the purpose of generating commissions rather than benefiting the client. In practice, this clause sets standards for what constitutes excessive trading, often referencing the frequency of transactions or the suitability of trades relative to the client's investment objectives. Its core function is to protect clients from unethical practices by brokers, ensuring that trading activity is aligned with the client's best interests and not driven by the broker's desire for higher fees."}, "json": true, "cursor": ""}}