10.22.19

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

by: Melanie Waddell

FINRA will not eliminate its suitability rule in light of the SEC's Regulation Best Interest (Reg BI), and plans to submit to its board a rule proposal on sales contests and FINRA's suitability rule “to conform them to Reg BI,” Bob Colby, FINRA's chief legal officer, told attendees Monday at the National Society of Compliance Professionals' annual meeting. FINRA's suitability rule covers more investors, including institutions, than the SEC's Reg BI does. “I think what we'll say [in our proposal to the SEC] is if the recommendation is for retail accounts, it's covered by Reg BI and it will be covered by our suitability rule," said Colby.

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