FINRA Won’t Nix Suitability Rule in Light of Reg BI

October 29, 2019 by Melanie Waddell

The Financial Industry Regulatory Authority will not eliminate its suitability rule in light of the Securities and Exchange Commission’s Regulation Best Interest, and plans to submit to its board shortly a rule proposal on sales contests and FINRA’s suitability rule “to conform them to Reg BI,” the broker-dealer regulator’s chief legal officer said Monday.

“We’re not going to get rid” of the suitability rule — Rule 2111 — Bob Colby, FINRA’s chief legal officer, told attendees Monday at the National Society of Compliance Professionals’ annual meeting in Baltimore.

Originally Posted at ThinkAdvisor on October 21, 2019 by Melanie Waddell.