FINRA's Member Regulation Department will be conducting a review with respect to products linked to the Chicago Board Options Exchange Volatility Index ("VIX").
The review will focus on the supervisory processes followed by member firms to identify and mitigate sales practice risks associated with recommendations to non-institutional purchasers of VIX-linked products, including, but not limited to, unsuitable recommendations, misrepresentations and appropriateness of any required disclosures to customers. The review will also assess supervisory controls of member firms with respect to product vetting, testing and approval.
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