Series 24: Suitability Guidelines

Taken from our Series 24 Online Guide

Suitability Guidelines

Broker-dealers must believe on reasonable grounds that the transactions or strategies they recommend are suitable for an individual customer. Firms may approve an account only after conducting a suitability analysis, based on the firm’s due diligence in understanding the risks of the recommendations it makes and the customer’s personal and investment profile. The firm must make “reasonable efforts” when opening an account to collect and maintain this information.

Specifically, FINRA recognizes three components with regard to suitability obligations:

1. Reasonable-basis obligation. A broker-dealer must understand the complexity and risks of a security or investment strategy, and consciously determine whether it is suitable for at least some investors. If a member firm or its brokers and dealers do not understand the risks and mechanics of mortgage-backed securities, for example, it is a suitability violation to recommend them to investors.
2. Customer-specific obligation. A broker-dealer must have a reasonable basis to believe that a recommendation

+ Read More

More Series 24 Info

What are people saying?

Create an Account

Since you're reading about Series 24: Suitability Guidelines, you might also be interested in:

Series 6 - Chapter Six

Series 24 - 4.2.9.3. Small Issues: Regulation A

Series 53 - Federal Securities Laws

Series 65 - 5.2.3. Current Financial Status

Series 52 - 5.1. Analyzing General Obligation Bonds

Series 24 - 3.1.4. Suitability

Series 6 - 1.2.1.4.2. Liabilities for False Communications

Series 79 - Evaluation of Specific Aspects of the Proposed Deal

Series 24 - 2.1.5. Written Supervisory Procedures

Series 50 - Step-Up and Step-Down CDs

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

I used Solomon to sit Series 24 and Series 79, passing with 81% and 88% respectively. Having looked at other material providers, Solomon stands out because of their prompt replies to student questions and the completeness of the answers provided – they are the best out there!

Chris Brice,CFA Bell Potter Cantley, Québec, Canada

I was very apprehensive about the Series 24 exam prior to taking it. Everyone I knew who had taken it informed me that it was an incredibly difficult test, with questions that were meant to trick you. After following Solomon's six week study outline and making flashcards for my weakest areas, I was averaging in the high 80s on the Solomon practice exams. That gave me the confidence I needed to walk into the test center feeling prepared, and the knowledge I needed to walk out of the test center having scored an 88. I am now recommending the Solomon Series 24 materials to everyone at the office!

Janie Richards, Austin, TX

As easy and painless as it could ever get (Series 24)!

Francis R., Hong Kong, China

I wanted to let you know I passed the exam [Series 24] this morning! The practice exams were invaluable. Thank you for your extra help and suggestions. I have recommended this to two of my co-workers who will be taking the Series 7 this year. I will say, the 24 was worded so tricky. And so much irrelevant info put into the questions. I had to write down pieces of the question to get the gist of what it was asking. Very purposfully confusing. But it's over and I'm thankful for your product. Thx again

Karmen Richards, Multi Financial Securities, Greensboro, NC

I just passed the series 24! It is, by far, the hardest test that I have ever taken. I had failed it 4 times using other study materials. I have never felt more defeated! Solomon Exam Prep is the best! I took over 154 practice tests...without seeing the same question twice. I was able to finally grasp the material and passed! My only regret is that I did not use the Solomon Exam Prep on my first attempt!

Bill Harpe, Capital Choice. Greensboro, GA

Just wanted to say thank you and give you a good review. I actually found that your test questions were harder than the actual exam and the explanations and the ability to create tests of all of my wrong answers helped me focus on my weak areas of the exam. I passed the first time and don't believe I couldn't have done it without your test bank. Thanks again.

Chris Porosky, FL