Customer Investment Profiles and Suitability: Rapid Fire

What this video covers

• Why a customer investment profile is dynamic, not static, and which life events force an update before the next recommendation
• What goes into the profile: financial factors (holdings, liabilities, net worth, tax bracket), personal factors (age, dependents, liquidity, experience), and the four objectives on the risk spectrum (preservation of capital, income, growth, speculation)
• The three independent suitability obligations: reasonable-basis (product-level), customer-specific (this customer), and quantitative (pattern of trading), plus why each can pass while another fails
• When quantitative suitability applies without account control, and why churning requires scienter but excessive trading does not
• How Regulation Best Interest (Reg BI) raises the bar for retail customers above FINRA suitability for institutional clients, and the four Reg BI obligations with the written-documentation pattern
• Why an explicit hold recommendation triggers full suitability analysis, while implicit silence does not
• The accredited investor 1-2-3 rule: $1 million net worth excluding primary residence, $200,000 individual income, $300,000 joint income, each for two consecutive years, plus the 60-day mortgage lookback gotcha