On March 11, 2013, the Municipal Securities Rulemaking Board (MSRB) asked for comments on its proposed changes to its suitability rule that would parallel the revisions FINRA made in its suitability rules in July 2012.
MSRB General Counsel Gary Goldsholle said “our goal is to align suitability jurisprudence as much as possible.”
Most notably, the MSRB wants to adopt FINRA’s broad definition of investment strategies, which includes recommendations to hold securities.
As with FINRA’s rule, the MSRB’s proposed revisions add specific factors that dealers must consider when recommending a transaction or investment strategy, such as the investor’s age, investment experience, time horizon, liquidity needs and risk tolerance.
The MSRB asks for comments to its proposal by May 6, 2013.
Jason Doss is the owner of The Doss Firm, LLC, an Atlanta-based law firm devoted to representing consumers across the country in a variety of areas including investment disputes and consumer class action litigation. Mr. Doss earned his J.D. from Florida State University in 2002 and his B.A. from the University of Florida in 1997.