Suitability
Suitability is the obligation to recommend only investments appropriate to a particular customer's circumstances. In the United States it has largely been superseded for retail recommendations by Regulation Best Interest.
Where does suitability come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Baris Cabalar (churning, 2024) | SEC | 2024-10-16 | Churning | — | unknown |
| SEC v. Laidlaw and Company (UK) Ltd. (churning, 2023) | SEC | 2023-11-20 | Churning | $223k | settled |
| SEC v. Michael Blumer, John Kuprianchik, David Page, Steven Thompson, Joseph Todaro (churning, 2023) | SEC | 2023-09-28 | Churning | — | unknown |
| SEC v. Carla Lea Chastain (churning, 2023) | SEC | 2023-08-18 | Churning | — | settled |
| SEC v. Waddell & Reed, LLC (churning, 2022) | SEC | 2022-09-19 | Churning | — | settled |