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.

TitleFormat - SizeStatus
Text of Proposed Rule ChangePDF - 955.2 KB
Corrected Federal Register NoticePDF - 112.35 KB
Extension No. 1PDF - 27.47 KB
Response to CommentsPDF - 549.69 KB
Amendment No. 1 to Proposed Rule ChangePDF - 127.88 KB
Extension No. 2PDF - 27.23 KB
Approval OrderPDF - 87.36 KB