Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Wednesday, April 13, 2011

FINRA Delays Effective Date for Suitability and Know Your Customer Rules

FINRA filed with the SEC a proposed rule change to delay the implementation date for FINRA Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability), as approved in SR-FINRA-2010-039, until July 9, 2012 (from Oct. 7, 2011).  FINRA designated the proposed rule change as constituting a “non-controversial” rule change which renders the proposal effective upon filing.  The SEC published a notice to solicit comments from interested persons.

According to FINRA, numerous firms requested that the approved rules’ implementation date be delayed to allow firms additional time to determine the types of systems and procedural changes they need to make, implement those changes, and educate associated persons and supervisors regarding compliance with the rules.

http://lawprofessors.typepad.com/securities/2011/04/finra-delays-effective-date-for-suitability-and-know-your-customer-rules.html

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