Suitability Rules
FINRA Rule 2111 (Suitability) requires that recommendations be suitable based on:
Suitability = match recommendation to customer profile. Know Your Customer (KYC) first!
Complete Analysis & Legal Rationale
Suitability requires that recommendations be based on the customer's investment profile, including risk tolerance, financial situation, investment objectives, time horizon, and other factors.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Age is ONE factor, but suitability requires a complete investment profile.
Accurately reflects standard governing principles and verified criteria.
Past performance alone is not sufficient - the focus is on customer needs.
Commissions should NEVER drive recommendations - that would be a violation.
Official Standard: Primary source referenced in the authored explanation (FINRA Rule 2111).