FINRA Rule 2010

Formerly known as NASD/FINRA Rule 2110, this is a broad conduct rule that mandates all FINRA member firms and their associated persons to maintain ethical standards in their professional activities.

It serves as a catch-all rule, allowing FINRA to discipline members for unethical or improper behavior even if the conduct is not explicitly covered by other FINRA rules.

Violations can include fraudulent behavior, misrepresentation, failure to supervise, or even certain personal misconduct if it reflects negatively on the member’s ability to meet industry standards.

An infraction of many other FINRA rules will often, as a consequence, result in the violation of this bedrock conduct rule.