In-Network Mobile recording

In-Network Mobile recording

FINRA Rule 2111: Suitability

The suitability rule is fundamental to fair dealing and is intended to promote ethical sales practices and high standards of professional conduct.

Highlights

  • A customer’s investment profile should include customer’s age, other investments, financial situations and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.
  • A member fulfils the customer-specific suitability obligation for an institutional account if the member has a reasonable basis to believe that the institutional customer is capable of evaluating investment risks independently and the institutional customer affirmatively indicates that it is exercising independent judgment in evaluating the member’s or associated person’s recommendations.

Useful links

FINRA Rule 2111: Suitability

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