Regulatory Notice 12-55

Guidance on FINRA’s Suitability Rule

Executive Summary

In November 2010, the Securities and Exchange Commission (SEC) approved FINRA Rule 2111 (Suitability), which became effective on July 9, 2012. In May 2012, FINRA issued Regulatory Notice 12-25, which provides guidance on the rule in a “frequently asked questions” (FAQ) format. This Notice addresses two issues discussed in Regulatory Notice 12-25: the scope of the terms “customer” and “investment strategy.” In addition, FINRA has created a suitability Web page that, among other things, will locate in one place questions and answers regarding FINRA Rule 2111.

 

Questions regarding this Notice should be directed to:

  • James S. Wrona, Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8270; or
  • Matthew E. Vitek, Assistant General Counsel, OGC, at (202) 728-8156.