Feb. 14, 2012
When your broker recommends that you buy or sell a particular security, your broker must have a reasonable basis for believing that the recommendation is suitable for you. In making this assessment, your broker must consider your income and net worth, investment objectives, risk tolerance, and other security holdings.
The major securities industry self-regulatory organizations have suitability rules. You'll find FINRA's suitability rule and links to other FINRA materials concerning suitability in the FINRA Manual on FINRA’s website. If you believe your broker made unsuitable recommendations or engaged in another sales practice abuse, please send us your complaint using our online complaint form.