Proposed Rule Change to Adopt FINRA Rules 2090 (Know Your Customer) and 2111 (Suitability) in the Consolidated FINRA Rulebook

Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to adopt FINRA Rule 2111 (Suitability) and FINRA Rule 2090 (Know Your Customer) as part of the Consolidated FINRA Rulebook. The proposed rules are based in large part on NASD Rule 2310 (Recommendations to Customers (Suitability)) and its related Interpretative Materials (“IMs”) and Incorporated NYSE Rule 405(1) (Diligence as to Accounts), respectively. As further detailed herein, the proposed rule change would delete those NASD and Incorporated NYSE rules and related NASD IMs and Incorporated NYSE Rule Interpretations.

DateTitleFormat - SizeStatus
8/2/2010Text of Proposed Rule ChangePDF - 955.2 KB
8/26/2010Corrected Federal Register NoticePDF - 112.35 KB
9/30/2010Extension No. 1PDF - 27.47 KB
10/21/2010Response to CommentsPDF - 549.69 KB
10/21/2010Amendment No. 1 to Proposed Rule ChangePDF - 127.88 KB
11/4/2010Extension No. 2PDF - 27.23 KB
11/23/2010Approval OrderPDF - 87.36 KB