Under the requirements for identifying high-risk clients, which of the following best defines the 'Legal Risk' a client might present to a Dealer Member under Rule 3926(2)(i)?

Question

Accepted Answer

Legal risk to the Dealer Member involves the potential for lawsuits or regulatory sanctions arising from the firm's association with a client who has a history of non-compliance or litigation.

Under the requirements for identifying high-risk clients, which of the following best defines the 'Legal Risk' a client might present to a Dealer Member under Rule 3926(2)(i)?

Discussion