What are suitability questions?
A suitability question usually tells a story and provides a number of facts about a customer, some relevant, some there for distraction. These questions can be a paragraph or two in length.
What is difference between FINRA and SEC?
FINRA is a not-for-profit entity that is not part of the government. The Securities and Exchange Commission (SEC) is a government organization that is meant to protect investors and ensure the integrity of the securities market. The SEC oversees FINRA and acts as the first level of appeal for actions brought by FINRA.
Can FINRA put you in jail?
Can FINRA Send You to Jail? FINRA is not a government organization, so it does not have the power to send people to jail (even if they violate FINRA’s terms).
What’s another word for suitability?
In this page you can discover 16 synonyms, antonyms, idiomatic expressions, and related words for suitability, like: fitness, appropriateness, worthiness, eligibility, rightness, adequacy, desirability, acceptability, propriety, qualification and suitableness.
Can the SEC enforce FINRA rules?
An SRO is a membership-based organization that creates and enforces rules for members based on federal laws. FINRA is on the front line in licensing and regulating broker-dealers. The SEC oversees FINRA.
What do you need to know about FINRA suitability?
(a) A member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.
What do you need to know about FINRA rule 2111?
(b) The customer-specific obligation requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile, as delineated in Rule 2111 (a).
What is the suitability rule for a broker?
Brokers must have a firm understanding of both the product and the customer, according to Rule 2111. The lack of such an understanding itself violates the suitability rule. Suitability | FINRA.org
Can a compliance professional view a FINRA case?
Firm compliance professionals can access filings and requests, run reports and submit support tickets. Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. Have a Problem?