investment-suitability
Investment Suitability
Purpose
Guide the assessment of investment suitability obligations under FINRA rules and related standards. This skill covers the three suitability obligations, the required customer profile elements, product-specific suitability concerns, household-level considerations, and enforcement patterns — enabling a user or agent to identify where suitability problems may arise in recommendation workflows.
Layer
9 — Compliance & Regulatory Guidance
Direction
prospective
When to Use
- Evaluating whether a recommendation is suitable for a specific customer
- Designing recommendation engines, suitability questionnaires, or account review processes
- Assessing product-specific suitability concerns (complex products, alternatives, leveraged ETFs, variable annuities)
- Reviewing account-level vs household-level suitability
- Understanding where Reg BI has raised the bar beyond traditional suitability
- Evaluating hold recommendations or account type recommendations for suitability
- Assessing institutional suitability exemption applicability
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