know your customer rule
Tag Archive

  • FINRA Rule 2111 regarding Suitability

    June 26, 2012 Comments (0) Blog, Securities Fraud

    Financial Industry Regulatory Authority Inc.’s Rule 2111 covers general suitability for recommended transactions and investment strategies involving securities. The regulation essentially requires that brokers perform reasonable due diligence to understand the nature of the recommended strategy or securities

    Read More »
  • FINRA Rules on Private Placements

    January 21, 2011 Comments (0) Blog, Securities Fraud

    Private Placements have become a hot button issue for FINRA regulators and securities attorneys representing investors.  The number of private placement cases has spiked considerably over the past few years in large part because of the sizable commissions brokerage firms generate from selling private placements.  We

    Read More »
  • FINRA Know Your Customer Rule

    January 13, 2011 Comments (0) Blog, Securities Fraud

    Financial Advisors have a fiduciary duty to research investments and to make sure that every investment they recommend is suitable for the client.  This obligation is typically called the “Know Your Customer” Rule.  Generally, in order to determine whether an investment is suitable, a stockbroker must know the

    Read More »