Washington § 21.20.702 - Suitability of recommendation — Reasonable grounds required.

Full text of Washington Revised Code of Washington § 21.20.702 — Suitability of recommendation — Reasonable grounds required., with citation guidance and answers to common questions.

§ 21.20.702. Suitability of recommendation — Reasonable grounds required.

(1) In recommending to a customer the purchase, sale, or exchange of a security, a broker-dealer, salesperson, investment adviser, or investment adviser representative must have reasonable grounds for believing that the recommendation is suitable for the customer upon the basis of the facts, if any, disclosed by the customer as to his or her other security holdings and as to his or her financial situation and needs.
(2) Before the execution of a transaction recommended to a noninstitutional customer, other than transactions with customers where investments are limited to money market mutual funds, a broker-dealer, salesperson, investment adviser, or investment adviser representative shall make reasonable efforts to obtain information concerning:
(a) The customer's financial status;
(b) The customer's tax status;
(c) The customer's investment objectives; and
(d) Such other information used or considered to be reasonable by the broker-dealer, salesperson, investment adviser, or investment adviser representative in making recommendations to the customer.
[ 1994 c 256 s 26; 1993 c 470 s 2.]

Notes

Findings—Construction—1994 c 256: See RCW 43.320.007.

Source: official Washington text · Last verified 2026-08-27

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Frequently Asked Questions About Washington § 21.20.702

What does Revised Code of Washington § 21.20.702 cover?

Section 21.20.702 ("Suitability of recommendation — Reasonable grounds required.") is part of the Revised Code of Washington, the codified statutory law of Washington. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Washington § 21.20.702?

A common citation format is "Revised Code of Washington § 21.20.702" (Washington). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Washington law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Washington official source linked on this page or consult a licensed Washington attorney.

How does Washington § 21.20.702 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Washington can advise on how this section applies to you. Contact your state or local bar association for a referral.

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