Co-authored by Tanja Samardzija.
In November 2010, the Securities and Exchange Commission approved FINRA’s new suitability rule — FINRA Rule 2111 (the Rule). Previously, FINRA issued Regulatory Notices 11-02 and 11-25 discussing the Rule’s requirements, offering further guidance on the Rule and announcing a new implementation date of July 9, 2012.
In response to industry questions, FINRA has released a third notice, Regulatory Notice 12-25, in order to provide additional guidance on the Rule. Regulatory Notice 12-25 addresses questions that are representative of the issues firms are attempting to resolve as they finalize their plans for compliance with the Rule. Nevertheless, FINRA has emphasized that it previously addressed numerous issues and it encourages firm’s to review (1) FINRA’s responses to comments submitted during the rulemaking process and (2) Regulatory Notices 11-02 and 11-25.
Click here for FINRA Regulatory Notice 12-25.