Cal. Code Regs. Tit. 10, § 260.218.2 - Suitability of Recommendations

Current through Register 2022 Notice Reg. No. 16, April 25, 2022

Any broker-dealer and any agent employed by such a broker-dealer who recommends to a customer the purchase, sale or exchange of any security shall have reasonable grounds to believe that the recommendation is not unsuitable for such customer on the basis of information furnished by such customer after reasonable inquiry concerning the customer's investment objectives, financial situation and needs, and any other information known by such broker-dealer or agent.

Notes

Cal. Code Regs. Tit. 10, § 260.218.2

Note: Authority cited: Sections 25218 and 25610, Corporations Code. Reference: Section 25218, Corporations Code.

1. Amendment filed 11-29-79 as an emergency; designated effective 1-1-80. Certificate of Compliance included (Register 79, No. 48).
2. Editorial correction of NOTE filed 4-6-83 (Register 83, No. 15).

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