..."suitability" area by adoption of Article HI, Section 2, of the Rules of Fair Practice: "Section 2 In recommending to a customer the purchase, sale or...customer upon the basis of the facts, if any, disclosed bv such customer as to his other security holdings and as to his financial situation and needs." Of...

...recommendation to a customer. The NASD has a Section 2 now which involves suitability, and it reads that "in recommending to a customer the purchase, sale,....shall have reasonable grounds for believing that a recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such...

...The suitability doctrine Is contained In art. Ill 5 2, NASD Rules of Fair Practice, which provides: In recommending to a customer the purchase, sale or...his other security holdings and as to his financial situation and needs. CCH NASD MANUAL 1 2152 (1971). Set Boren & Co., 40 SEC 217 (1960); Philips & Co.,...

...Section 2 of Article III of its Rules of Fair Practice. That Section provides that: "In recom-, mending to a customer the purchase, sale or exchange of any...facts, if any, disclosed by such customer as to his own security holdings and as to his financial situation and needs." Applicant contends that the finding...

...of the initial public offering of a company in the promotional, exploratory or developmental stage, a member shall have reasonable grounds for believing...recommendation is suitable for such customer upon the basis of information furnished by the customer concerning the customer's investment objectives, financial situation...

...the general public. •Substantially the same as the NASD Manual. -14*Recommcnclations to Customers In recommending to a customer the purchase, sale or...his other security holdings and as to his financial situation and needs. *Business Conduct of Members A member, in the conduct of his business , shall...

...by such broker or dealer or associated person. 17 CFR S 240.15blÛ-3 (1976). The HASD rule states: In recommending to a customer the purchase, sale or...his other security holdings and as to his financial situation and needs. NASD Rules of Fair Practice, Art. Ill, S 2, NASD Manual (CCH) 12152 (1976) - 28...

...states: [I]n recommending to a customer the ourchase, sale or exchange of any security, a [broker-dealer] member shall have reasonable grounds for believing...his other security holdings and as to his financial situation and needs. 16/ (Eluphasis added.) Toe NASD suitability rule, therefore, requires that member...

...states: fl]n recommending to a customer the ourchase, sale or exchange of any security, a [broker-dealer] member shall have reasonable grounds for believing...that the recommendation is suitable for such customer uoon the basis of the facts, if any, disclosed by such customer as to his other security holdings and...

...clt. 5. 16/ See National Association of Security Dealers By-Laws. The text reads: "In reconmendlng to a customer the purchase, sale or exchange of any...his other security holdings and as to his financial situation and needs." IT/ Proposed Final Rules of the Commodity Futures Trading Commission, Regulation...