The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s proposal to adopt consolidated rules governing know-your-customer and suitability obligations. The effective date for the new rules is October 7. The new know-your-customer rule, FINRA Rule 2090, will replace New York Stock Exchange Rule 405(1) and will require member firms to use reasonable diligence, in regard to the opening and maintenance of every account, to know the essential facts concerning every customer. The know-your-customer obligation arises at the beginning of the customer-broker relationship and does not depend on whether the broker has made a recommendation. Unlike NYSE Rule 405, FINRA Rule 2090 does not specifically address account opening, supervision or orders.