Putting It Together: Which Rule Applies?
Chapters in this video
What this video covers
- Why an unsolicited trade with no advice triggers zero suitability or Reg BI obligation, yet the know-your-customer (KYC) rule still applies
- How a simple "great idea" or "yes, stay in" counts as a recommendation that restarts the entire compliance analysis from scratch
- Who qualifies as a Reg BI retail customer (natural person, personal/family/household purpose) and the Form CRS delivery requirement at or before the recommendation
- Which institutional customers meet the $50 million exemption threshold and get customer-specific suitability waived, versus non-qualifying institutions stuck with full three-layer Financial Industry Regulatory Authority (FINRA) suitability
- Why Reg BI wins the turf war for retail municipal product recommendations, and when the Municipal Securities Rulemaking Board (MSRB) municipal suitability rule actually applies
- How the investment-analysis-tool rule operates as a stand-alone disclosure layer alongside whatever governing standard already applies
- Why a hold recommendation on a previously unsolicited purchase requires evaluating the customer's current profile, not the profile from years ago
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