...more specific. For example, a member recommending that its customer purchase or sell a security must have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of facts, if any, disclosed by such customer as to his other security holding and as to his financial...

...and the SEC require that the stockbroker who recommends a purchase, sale, or exchange of a security shall have "reasonable grounds" for believing that the recommendation is "suitable" for the customer on the basis of information furnished by the customer after reasonable inquiry concerning...

...Measures Are Needed transactions and cannot be applied to government securities transactions, states that: "In recommending to a customer the purchase, sale...security holdings and as to his financial situation and needs."13 This means, for example, that a dealer cannot excessively trade a customer's account, recommend...

...Association of Securities Dealers, Inc. ("NASD"). NASD Rules of Fair Practice, Art. Ill, §2 provides that: (a) In recommending to a customer the purchase, sale...the basis of the facts, if any, disclosed by such -27customer as to his other security holdings and as to his financial situation and needs. (b) Prior...

...suitability requirement under Article III, Section 2 of the NASD Rules of Fair Practice, which states: 192 In recommending to a customer the purchase, sale or...believing that the recommendation is suitable for any such customer upon the basis of the facts, if any, disclosed by such customer as to his other security...

...security, a member shall have reasonable grounds for believing that the recommendation is suitable for any such customer upon the basis of the facts, if any,...such customer as to his other security holdings and to his financial situation and needs. While we question the need for restating existing law and regulatory...

...advice may be provided only by trained and knowledgeable staff. Suitable Recommendations to Customers In recommending to a customer the purchase, sale, or exchange of any nondeposit investment product, a DSR should have reasonable grounds for believing that the recommendation...

...knowledgeable staff. If RETAIL IlfVESTMESIT SALES: GUIDELINES FOR. BANKS Suitable Recommendations to Customers In recommending to a customer the purchase, sale, or exchange of any nondeposit investment product, a DSR should have reasonable grounds for believing that the recommendation...

...its members' government securities transactions. "See, eg, NASD Rules of Fair Practice, Art. Ill, §2 ("In recommending to a customer the purchase, sale...holdings and as to his financial situation and needs. ). See also New York Stock Exchange Rule 405 (the "know your customer rule"); American Stock Exchange...

...19 (b) and (c), 15 USC §§ 78o (b) and (c). 80 See, eg, NASD Rule of Fair Practice, Art. Ill, §2 ("In recommending to a customer the purchase, sale,...holdings and as to his financial situation and needs. "X See also New York Stock Exchange Rule 406 (the "know your customer rule"); American Stock Exchange...