Stockbroker Law - Friday, April 19, 2013
FINRA Addresses Complex and Non-Traditional Investments

The past few years of unstable financial markets, while yielding fixed income products and declining interest rates, have seen an explosion of investment products.  Many of these investment products are structured or packaged investments, which do not have a readily-available market and which cannot be priced.  The Financial Industry Regulatory Authority (FINRA) has addressed the various aspects of various directives which would encompass such products, including NASD Notice to Members 03-70, 05-26, and 12-03. 


Likewise, FINRA’s new suitability Rule 2111, effective July 9, 2012, imposes an obligation on FINRA-registered brokers to “have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based upon the information obtained through the reasonable diligence of the member or associated person, to ascertain the customer’s investment profile.” 


This new suitability rule requires that FINRA-registered brokers, when considering the customer’s investment profile, assess the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.


We offer a free initial consultation to customers who feel they may have been improperly sold non-conventional investments, new products, or complex products.


The Law Offices of Timothy J. O’Connor is one of the only law firms practicing securities law in the Tri-City Capital District of Albany, Schenectady and Troy.  We also represent victimized investors throughout the rest of New York State, including Buffalo, Binghamton, Syracuse, Watertown, Utica, Kingston, New York City/Manhattan, Long Island, and everywhere in between, as well as in the surrounding states of Massachusetts, Vermont, New Hampshire, Connecticut, and New Jersey.


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