The best interest standard under FINRA’s suitability rule

Eversheds Sutherland (US) LLP
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In connection with the US Securities and Exchange Commission’s (SEC) proposed Regulation Best Interest, the Financial Industry Regulatory Authority (FINRA) has asserted (with some case law support from the SEC) that its suitability rule “implicitly requires a broker dealer’s recommendations to be consistent with customers’ best interests....” This analysis explores the questionable foundation of that assertion.

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