Alert May 26, 2009

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

As part of the ongoing process of developing a single rulebook following the consolidation of the member regulation, enforcement and arbitration operations of the New York Stock Exchange (“NYSE”) into the NASD to create FINRA, FINRA has issued a Regulatory Notice seeking public comment on a proposal to include in the Consolidated FINRA Rulebook modified versions of (a) NASD Rule 2310, which deals with suitability obligations, and (b) Incorporated NYSE Rule 405, which deals with know-your-customer obligations.   Comments must be received by June 29, 2009.  The Regulatory Notice is available at http://www.finra.org/Industry/Regulation/Notices/2009/P118711.