Client Alert

FINRA Proposes Consolidated Rules Governing Suitability and Know-Your-Customer Obligations

June 16, 2009

The Investment Management Practice

In Regulatory Notice 09-25 (the Notice), the Financial Industry Regulatory Authority (FINRA) requested comment on proposed FINRA rules governing suitability and know-your-customer obligations. FINRA is proposing these rules as part of the ongoing process of developing a consolidated FINRA rulebook of former NASD and NYSE rules. The proposed rules will replace (a) NASD Rule 2310, which deals with suitability obligations, and (b) NYSE Rule 405, which deals with know-your-customer obligations. Comments on the proposed rules are due by June 29, 2009.

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