FINRA Rule 2111

FINRA Rule 2111, known as the "suitability rule," requires brokers to ensure that any investment recommendations they make to clients are suitable for those clients' financial situations and objectives. Brokers must consider a customer's financial needs, investment experience, risk tolerance, and the potential risks and rewards of the investment. This rule aims to protect investors by ensuring they receive appropriate advice that aligns with their individual circumstances, rather than simply pushing products for profit.