Legislation requiring securities advisers to perform suitability checks on prospective investors may put an unintended damper on the sales of mortgage-backed and other securities and could alter the way some issuers and dealers market their investment products.

The House provision, which proposes suitability regulations similar to those stock brokers must adhere to, would require securities advisers to investigate the financial and investment background of proposed investors, as well their investment objectives, to determine whether a sale could be made.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.