FINRA recently issued Regulatory Notice
22-08, which Reminds Members of Their Sales Practice
Obligations for Complex Products and Options and Solicits Comment
on Effective Practices and Rule Enhancements. The comment period
ends on May 9, 2022.
FINRA has long been concerned with retail customers purchasing
complex products. FINRA is concerned that investors may not have
the financial experience to understand the products, the ability to
withstand the risks or that the investment may perform in
unexpected ways in various market or economic conditions. These
concerns may be heightened when a retail customer accesses these
products through a self-directed platform without the assistance of
a financial professional. While FINRA raised these concerns
previously, the new guidance is timely because of the significantly
increased trading in complex products, more investors trading these
products online and obligations under Regulation Best Interest.
FINRA is in the process
