The Financial Industry Regulatory Authority says it will closely watch whether investment advisers observe its suitability rule when recommending "complex or high-yield products" to clients. "Investor appetite for yield, among other factors, has bid up market prices on investment-grade and high-yield debt, putting pressure on upside growth potential and creating significant downside risks," FINRA said in a letter describing its regulatory concerns for 2013. "In this environment, FINRA is particularly concerned about sales practice abuses, yield-chasing behaviors and the potential impact of any market correction, external stress event or market dislocation on market prices."

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