FINRA 2310 — Recommendations to Customers (Suitability)

The suitability rule provides that when a financial representative recommends to an investor the purchase, sale or exchange of any security, a financial representative shall have reasonable grounds for believing that the recommendation is suitable for such investor upon the basis of the facts, if any, disclosed by such investor as to his or her other security holdings and as to his or her financial situation and needs.

*This rule is no longer current and has been replaced by FINRA Rule 2111

Smarsh, Inc. assumes no liability for the accuracy or completeness of this information. Please consult with an attorney for specific information on specific rules and regulations and how they apply to your business.

Helpful Links:

FINRA 2211 — Institutional Sales Material & Correspondence

Documentation on 2310 Recommendations to Customers (Suitability) on FINRA’s website

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