Customer Investment Profiles and Suitability: Rapid Fire

What this video covers

• Why an explicit hold recommendation triggers full suitability obligations while implicit silence does not, and how this distinction shows up in answer choices
• How to build a customer investment profile from financial factors, personal factors, and the four investment objectives that are not mutually exclusive
• The three independent suitability obligations: reasonable-basis (product-level), customer-specific (this customer), and quantitative (series of trades), and why passing one never saves a failing another
• Why excessive trading violates quantitative suitability without any intent to defraud, and the critical difference between churning (scienter required) and quantitative suitability (no intent required)
• Which customers receive Regulation Best Interest (Reg BI) protection versus which remain under the FINRA suitability rule, and why best interest is a higher standard than suitable
• Reg BI's four obligations (Disclosure, Care, Conflict of Interest, Compliance), the written-documentation requirement, and why cost comparison and elimination of security-specific sales contests are non-negotiable
• The accredited-investor 1-2-3 memory aid: $1 million net worth (excluding primary residence), $200,000 individual income, $300,000 joint income, plus the 60-day mortgage-debt look-back that counts as a liability