---
title: "Extract stated limits on a broker-dealer recommendation"
url: "https://ailawframework.com/practice/financial-services-regulation/draft-or-review-a-target-market-determination-for-a-financial-product/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A28-T1-R7-US"
practice_area: "Financial Services Regulation (AFSL/ASIC/credit)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Extract stated limits on a broker-dealer recommendation

> Extract limitations the document itself states on the securities or strategies that may be recommended, each with the page. Write no target-market determination and do not decide best interest.

Canonical page: https://ailawframework.com/practice/financial-services-regulation/draft-or-review-a-target-market-determination-for-a-financial-product/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Financial Services Regulation (AFSL/ASIC/credit)](https://ailawframework.com/practice/financial-services-regulation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Extract limitations the document itself states on the securities or strategies that may be recommended, each with the page. Write no target-market determination and do not decide best interest. |
| What the lawyer must review | No target-market determination was found in the opened United States sources. Regulation Best Interest, 17 C.F.R. section 240.15l-1, applies when a broker, dealer, or associated person recommends a securities transaction or an investment strategy involving securities, including an account recommendation, to a retail customer. Paragraph (a)(1) requires the person to act in the retail customer's best interest at the time of the recommendation, without placing the broker's or associated person's interest ahead of the retail customer. Paragraph (a)(2)(i) requires, prior to or at the time of the recommendation, written full and fair disclosure of all material facts relating to the scope and terms of the relationship, including that the person is acting as a broker-dealer, the material fees and costs, and the type and scope of services, including any material limitations on the securities or strategies that may be recommended, plus all material facts relating to conflicts associated with the recommendation. Paragraph (a)(2)(ii)(A) requires a reasonable basis to believe the recommendation could be in the best interest of at least some retail customers. Paragraph (a)(2)(ii)(B) requires a reasonable basis to believe it is in the best interest of the particular retail customer based on that customer's investment profile and the potential risks, rewards, and costs, and that it does not place the broker's interest ahead. This is not a product-design duty for an issuer. The tool extracts stated limitations only. The lawyer decides whether any document is required. The Cornell page is not the official edition. |
| Written for | United States |
| Applies to | [Draft or review a target-market determination for a financial product](https://ailawframework.com/practice/financial-services-regulation/draft-or-review-a-target-market-determination-for-a-financial-product.md) |

## Checking plan

- What the AI does: Extract limitations the document itself states on the securities or strategies that may be recommended, each with the page. Write no target-market determination and do not decide best interest.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not draft a target-market determination.
- The rule covers a broker-dealer recommendation to a retail customer.
- Confirm the official edition. The linked page is a Cornell copy.

## Sources

- [17 C.F.R. section 240.15l-1, Regulation Best Interest](https://www.law.cornell.edu/cfr/text/17/240.15l-1) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*