SEC Rule 15c2-11

The rule requires that, before quoting a security, broker-dealers must review and maintain current, publicly available information about the issuer, such as financial statements and disclosures about business operations and management.

This rule is designed to prevent fraud and protect investors by ensuring that securities traded in the less-regulated OTC market are backed by adequate and reliable issuer information.

Amendments to the rule in recent years have expanded the scope of required disclosures and limited exceptions to increase market transparency.