BROKER-DEALER - FINRA Issues Regulatory Notice Reminding Members of SEC's Adoption of a Best Interest Standard of Conduct - On August 7, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice...more
Nearly ten years ago, FINRA decided to update its old suitability rule, NASD Rule 2310. It had been around a long time, and while it seemed to work fine, FINRA decided to incorporate into the new amended rule – FINRA Rule...more
On June 5, 2019, the Securities and Exchange Commission (“SEC”) voted to adopt “Regulation Best Interest,” which is intended to increase the duties a broker-dealer owes to its clients. While SEC-registered investment advisors...more
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...more
FINRA is encouraging broker-dealers (BDs) to act in their customers’ best interests, although the "suitability" standard applicable to BDs does not expressly require it. For example, in 2012, FINRA implemented an...more