Unsuitability

The unsuitability doctrine is based on the New York Stock Exchange’s Know Your Customer Rule and the Financial Industry Regulatory Authority’s (FINRA) Rules of Fair Practice.  Essentially, this doctrine requires that your stockbroker/financial advisor only recommend the purchase of securities that are consistent with your needs, objectives and risk tolerance.  Unsuitable investments subject to this claim include (but are not limited to) hedge funds, fixed annuities or variable annuities, fee-based managed accounts, mutual funds, closed-end funds, stocks, exchange-traded funds (ETF’s), municipal bonds and corporate bonds.