Week 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
• Practical challenges for salespeople determining suitability and for supervisors monitoring suitability.

 

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