FINRA's rules and guidance strive to protect investors and ensure the integrity of today's rapidly evolving market. FINRA is here to help keep investors and their investments safe. To ensure this protection, we enact rules and publish guidance for securities firms and brokers.

The suitability rule generally requires broker-dealers to use reasonable diligence to seek to obtain and analyze the customer-specific factors listed in the rule. A broker-dealer cannot make assumptions about customer-specific factors for which the customer declines to provide information.

In 1943, the Association's Board adopted what has become known as the "5% Policy" to be applied to transactions executed for customers. It was based upon studies demonstrating that the large majority of customer transactions were effected at a mark-up of 5% or less.

FINRA Rule 5130(i)(9), which is referenced in the definitions of FINRA Rule 5131, defines "new issue" to mean "any initial public offering of an equity security as defined in Section 3(a)(11) of the Exchange Act, made pursuant to a registration statement or offering circular," with enumerated exceptions, and does not ...