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.

  1. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  2. Self-Regulatory Organization - ...

    A non-governmental organization that has the power to create ...
  3. Regulation Fair Disclosure - Reg ...

    A rule passed by the Securities and Exchange Commission in an ...
  4. Stockbroker

    1. An agent that charges a fee or commission for executing buy ...
  5. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
  6. Disclosure

    The act of releasing all relevant information pertaining to a ...
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