Broker-Dealer Compliance Part II: Suitability and Standard of Conduct

This program is the second of four segments led by K. Susan Grafton, leader of Dechert LLP's Broker-Dealer, Securities and Trading Markets product line, exploring key regulatory issues applicable to broker-dealers. This segment will address the standards by which broker-dealers must conduct business with their customers. In particular, this segment will discuss the three types of suitability obligations applicable to broker-dealers under the rules of the Financial Industry Regulatory Authority (FINRA) and how they apply to retail and institutional customers. The SEC's proposed Regulation Best Interest will also be discussed, including issues of concern under the proposed version of Reg BI.   

Part II of the series will discuss the standards of conduct applicable to broker-dealers, proposed changes as a result of Regulation Best Interest, and the impact of these standards for broker-dealers.

Learning Objectives:

1. Review FINRA's current suitability obligations applicable to broker-dealers when dealing with their customers
2. Discuss proposed Regulation Best Interest
3. Advise on compliance consideration under the current and proposed rules