06-04-20
Oil-Related ETP Recommendations: FINRA Reminds Firms of Suitability and New Reg BI Obligations
Concern about recommendations of complex financial products for retail investors has been at the center of the debate over changing standards for broker-dealers and investment advisers. With full implementation of the heightened Reg BI requirements less than a month away, FINRA issued a Notice reminding firms of their sales obligations when offering recommendations on complex oil-related ETPs. FINRA’s Notice provides an important case study not only as to the specific expectations of firms that trade oil-related ETPs, but also on how the self-regulator appears to be handling concerns about recommendations to retail clients of complex products in a volatile market. Bates takes a closer look in the full article, including what FINRA expects of firms and registered representatives.