Rules Of Fair Practice


DEFINITION of 'Rules Of Fair Practice'

A set of rules and regulations developed by the National Association Of Securitie Dealers (NASD) or what is now called the Financial Industry Regulatory Authority (FINRA). The rules are a standard which members of FINRA must follow regarding their duties to customers.

BREAKING DOWN 'Rules Of Fair Practice'

Since FINRA is a self-regulatory organization the rules it enforces must be followed in addition to any commercial securities laws that have been passed. In a broad view, the Rules of Fair Practice cover the fair dealing, duty of loyalty, obligation of disclosure and other duties stockbrokers provide to their customers.

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