How the Industry and the Regulators are dealing with the new FINRA Suitability Rules
It’s been a year since the new suitability rules (FINRA Rule 2090, “Know Your Customer” and FINRA Rule 2111, “Suitability”) became effective. Are firms meeting regulatory expectations? What hurdles has the industry faced in terms of adjusting its sales processes? This seminar is being offered to clear up some of the more ambiguous parts of the rules and to clarify specifics about implementation and books and records (documentation) requirements.
After attending this course, attendees should be able to:
List the ways that the current market and regulatory environments will affect FINRA examinations of broker-dealers
- Use an in-depth understanding of the definition of “recommendation” to develop sound suitability policies and procedures
- Identify “investment strategies” utilized in their business models
- Make a determination as to which “hold” recommendations are “explicit” and which are “implicit”
- Fully understand how correspondence and social media factor in to suitability issues
- Develop processes ensuring compliance in terms of what the regulators are expecting relative to suitability documentation
For whom: Designed to increase the professional competency of broker-dealer professionals with legal, compliance, supervision and managerial responsibilities.
Suggested Skill Level: Intermediate
Instructional Method: Group Internet-Based
Prerequisites for participation:
There are no pre-requisites for participation.
Review FINRA Regulatory Notices #11-02, #12-25 and #12-55
Continuing Education Credits:
NRS Continuing Education Guide
Recommended CPE Credit: 2
Recommended IACCP CE Credit: 2
Recommended CA MCLE Credit: 2
Recommended CFP Credit: 2