When FINRA Rule 2111 goes into effect July 9, broker-dealers will be on the front lines of complying with new regulations stipulating how suitability reviews are completed on securities purchases (which include variable annuities).
More information must be sought from clients and in a new wrinkle, broker-dealers are required to document the suitability of their investment strategy recommendations. Like any new rule, a difficult transition period is expected as advisors switch over to the new compliance measures.
LifeHealthPro.com spoke to Paul Tolley, chief compliance officer at Commonwealth Financial Network in Waltham, Mass., about the run-up to the new FINRA regulation.
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