New Financial Industry Regulatory Authority, Inc. rules governing broker-dealer “know your customer” and suitability obligations (FINRA Rules 2090 and 2111) became effective July 9, 2012. FINRA recently issued additional guidance on the scope of the terms “customer” and “investment strategy”. FINRA also recently created a suitability website that aggregates questions and answers with respect to FINRA Rule 2111. This Client Alert summarizes the issues addressed in the latest guidance.
Chapman Client Alert