Chapter 1 preview
Chapter 1: Building an Investor Profile
Chapter 1 establishes what a registered representative must know before making any recommendation. Focus on the difference between financial and non-financial profile information, how to rank investment objectives by risk, and the three suitability obligations under FINRA Rule 2111. Regulation Best Interest defines the standard for broker-dealers; the fiduciary duty defines the standard for investment advisers. Know when each applies, what each requires, and how customer profile information drives both.
Chapter summary
Chapter 1 establishes what a registered representative must know before making any recommendation. Focus on the difference between financial and non-financial profile information, how to rank investment objectives by risk, and the three suitability obligations under FINRA Rule 2111. Regulation Best Interest defines the standard for broker-dealers; the fiduciary duty defines the standard for investment advisers. Know when each applies, what each requires, and how customer profile information drives both.
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Key concepts
- Developing a Customer Profile
- Financial Considerations
- Non-Financial Considerations
- Financial Goals and Investment Objectives
- Regulation of Customer Interactions
- Developing a Customer Profile
- Financial Considerations
- Non-Financial Considerations
- Financial Goals and Investment Objectives
- Regulation of Customer Interactions
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