What is the FINRA Rule 2111?
What is the FINRA Rule 2111?
FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer.
What is the FINRA Rule 2330?
Rule 2330 requires a registered principal to review and determine whether to approve a customer’s application for a deferred variable annuity before sending the application to the issuing insurance company.
What is the NASD Rule 2310?
(a) In recommending to a customer the purchase, sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such customer as to his other security holdings and as to his financial situation …
Can you 1035 from annuity to life insurance?
A 1035 exchange is a provision in the Internal Revenue Service (IRS) code allowing for a tax-free transfer of an existing annuity contract, life insurance policy, long-term care product, or endowment for another one of like kind.
Is a limited partnership a direct participation program?
A direct participation program is usually organized as a limited partnership, a subchapter S corporation, or a general partnership. Such structures allow the DPP’s income, losses, gains, tax credits, and deductions to transfer though to the underlying partner/taxpayer on a pre-tax basis.
Which of the following are disadvantages of the limited partnership form of a direct participation program?
The major disadvantage of a DPP is the lack of liquidity, meaning that the investor cannot easily sell his portion of ownership. An investor wishes to buy a limited partnership investment that has the goal of capital appreciation without producing currently taxable cash flow.
Why didn’t FINRA eliminate its suitability rule?
FINRA has not eliminated its suitability rule because there will be recommendations that will not be subject to Reg BI but that would still warrant suitability protections.
What is the FINRA 5% rule?
The five percent rule is a stipulation of the Financial Industry Regulatory Authority (FINRA), which oversees brokers and brokerage firms in the U.S. Dating back to 1943, it stipulates that a broker shouldn’t charge commissions, markups, or markdowns of more than 5% on standard trades, both stock exchange listings and …
Does FINRA credit late disclosure fees for bankruptcy?
Similarly, FINRA will credit any late disclosure fees assessed in connection with the current firm’s reporting of a bankruptcy event that should have been reported by a prior firm and that was older than 10 years at the time the individual became registered with the current firm. Any such credits will be made to the firm’s Flex-Funding Account.
How do I contact FINRA registration and disclosure?
In such situations, a firm should contact FINRA Registration and Disclosure staff by calling the Gateway Call Center at (301) 869-6699 to have the matter researched, and if appropriate, an adjustment made to the late fee. 7.
How do I submit a corporate action to FINRA?
FINRA requires that the Company complete the Issuer Company-Related Action Notification Form and submit it to FINRA no later than 10 calendar days prior to the record date of the corporate action. In addition to the Form itself, FINRA requires the submittal of numerous supporting documents and historical corporate information.
What is FINRA BrokerCheck and how does it work?
The Securities and Exchange Commission, FINRA, other self-regulatory organizations and state securities regulators use the information to make licensing and registration decisions, among other things. FINRA also uses the information in FINRA BrokerCheck, which investors use for researching the professional backgrounds of firms and brokers.
