Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability.

FORBES: Undue Concentration In Brokerage Portfolio Fails Suitability Test

Rule 2111(b) provides an exemption to customer-specific suitability regarding institutional investors if the conditions delineated in that paragraph are satisfied.

FORBES: Undue Concentration In Brokerage Portfolio Fails Suitability Test