Investment Strategies and Recommendations to Hold

What this video covers

• Why FINRA's "investment strategy involving a security" definition is interpreted broadly, covering dollar-cost averaging, sector rotation, and buy-and-hold approaches
• Why an explicit recommendation to hold a security triggers the same full suitability analysis as a recommendation to buy or sell
• The critical distinction between an explicit hold ("just hold what you have") and an implicit hold (silence about existing positions)
• Why an unsolicited, customer-initiated trade does not trigger a suitability analysis for the representative
• How the asset allocation model safe harbor protects generic recommendations like a 60/40 stock/bond mix
• The exact moment the safe harbor disappears: naming a specific fund, ETF, or specific positions the customer already holds
• Why Regulation Best Interest (Reg BI) and FINRA suitability obligations apply identically to buy, sell, and hold recommendations