FINRA Rule 2111 Suitability (United States)
Rule 2111(b) and .07: institutional accounts – FINRA Rule 2111 Suitability (United States)

FINRA Rule 2111 Suitability (United States) 2111-07-independent-judgment: Accept an institutional customer's independent-judgment indication trade-by-trade, by asset class or for the whole account

What does 2111-07-independent-judgment require?

Supplementary Material .07 explains the forms the Rule 2111(b) statement may take: per trade, per asset class, or once for every transaction the account may carry out. Firms must capture which form the customer chose and keep it with the account record, so that a later recommendation outside the scope of the indication is handled under the full customer-specific obligation.

Maintained by Gerard Blokdyk

Other controls in Rule 2111(b) and .07: institutional accounts – FINRA Rule 2111 Suitability (United States)

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