Phase I: Foundation

Session Description

Suitability Issues

Professor Poser examines concepts of suitability standards related to recommendations of investments to public customers. He does this through a review of:

 

• SEC and FINRA regulatory requirements
• Unsuitable securities and strategies
• Supervision and “red flags”
• Preferred industry practices
• Emphasis will be placed on the practical challenges for salespeople determining suitability and for supervisors monitoring suitability. Participants will dive deeper into suitability issues during Phase III of the CRCP Program.

 

After completing this session, you will be able to:

 

• Discern whether recommendations are likely to be judged suitable or unsuitable based upon account types
• Learn and apply various suitability requirements based upon product types and customer needs
• Understand the practical and legal implications of the “dramshop” theory of suitability
• Make determinations on whether supervision over certain recommendations is adequate

 

Instructor:

 

Norman Poser, Professor of Law Emeritus, Brooklyn Law School