Regulatory Notice 13-31

FINRA Highlights Examination Approaches, Common Findings and Effective Practices for Complying With its Suitability Rule

Executive Summary

This Notice provides observations from recent FINRA examinations and highlights firms’ experiences with FINRA Rule 2111 (Suitability), which became effective on July 9, 2012. It does not create new or alter the existing questions and answers, guidance or interpretations of FINRA Rule 2111 contained in prior Notices.

 

The effective practices highlighted in this Notice are provided to help firms enhance compliance and supervision under the suitability rule. Adopting practices discussed in this Notice will not ensure rule compliance or result in a safe harbor, but we believe they are positive steps in building a strong compliance environment.

 

Questions regarding this Notice may be directed to

 

  • Daniel M. Sibears, Executive Vice President, Regulatory Operations/Shared Services at (202) 728-6911; or
  • Michael Rufino, Senior Vice President and Acting Head of Regulatory Operations/Sales Practice, at (212) 858-4487.