Broker-dealers and connected persons have three main suitability obligations. First, the reasonable-basis obligations requires that there be a reasonable basis to believe, based on reasonable diligence, that the recommendation is suitable for at least some investors. Second, the customer-specific obligation requires that there be a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Finally, quantitative suitability requires that a broker-dealer or associated person who has actual or de facto control over a customer account to have a reasonable basis for believing that a series of recommended transactions, even if suitable on their own, are not excessive or unsuitable for the customer taken together.
if you have suffered losses on investments recommended to you by your broker, then Galvin Legal may be able to help you Recover Investment Losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
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