On July 24, 2012, Nashville Partner Tom Potter and summer associate Emily Dennis authored the article entitled, “The Ins and Outs of FINRA Suitability Rule 2111,” that was published in Law360.
The article explains the new requirements for brokers-debtors in the FINRA Suitability Rule 2111, effective July 9, 2012, that expand prior suitability obligations found in its predecessor, the National Association of Securities Dealers and New York Stock Exchange Rules. Potter outlines these new requirements, including the new ‘reasonable basis’ to believe a recommendation is ‘suitable for the customer.’ This requirement is based on the consideration of customer-specific facts obtained through ‘reasonable diligence’, as well as the new explicit obligations on brokers, including customer-specific obligations and quantitative-suitability obligations.
For the full article, please see the online version, Click here
For more information, please contact Tom Potter.
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