Regulatory Notice 18-13

FINRA Requests Comment on Proposed Amendments to the Quantitative Suitability Obligation Under FINRA Rule 2111

Comment Period Expires: June 19, 2018

Summary

FINRA seeks comment on proposed rule amendments that would revise the quantitative suitability obligation under FINRA Rule 2111 (Suitability) to more effectively address instances of excessive trading in customers’ accounts. The proposed rule amendments would remove the element of control that currently must be proved to demonstrate a violation, but would not change the obligations to prove that the transactions were recommended and that the level of trading was excessive and unsuitable in light of the customer’s investment profile.

The proposed rule text is available in Attachment A.

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
  • Meredith Cordisco, Associate General Counsel, OGC, at (202) 728-8018.
The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments: 
DateCommenterFormat - Size
6/11/2018Keesal, Young & Logan, P.C.PDF - 97.6 KB
6/12/2018NASAAPDF - 139.84 KB
6/12/2018Cornell Law SchoolPDF - 198.15 KB
6/18/2018SIFMAPDF - 232.67 KB
6/18/2018Capital Forensics, Inc.PDF - 1.45 MB
6/18/2018PIABAPDF - 116.81 KB
6/19/2018Cambridge Investment Research, Inc.PDF - 58.74 KB
6/19/2018Financial Services InstitutePDF - 181.91 KB
6/19/2018Pace UniversityPDF - 85.11 KB
6/19/2018SECPDF - 66.95 KB
6/19/2018Securities Experts RoundtablePDF - 108.78 KB