What is FINRA Rule 2090?

FINRA Rule 2090 is called "Know Your Customer (KYC)". It requires member firms of FINRA (brokerage firms) to use reasonable diligence to gather and retain essential facts about their customers. This helps ensure that firms understand their customers' investment needs and risk tolerance, and can provide suitable recommendations and services.

Here are some key points about FINRA Rule 2090:

FINRA Rule 2090 plays a crucial role in protecting investors and ensuring the integrity of the financial markets. By understanding their customers, firms can better serve their needs and avoid potential risks.