When Should a Suitability Assessment Be Performed?
One of the Most Important Requirements Under the Rules That You Should Be Aware of Is the Advisor's Obligation to Make Investment Recommendations That Are...
One of the most important requirements under the rules that you should be aware of is the advisor's obligation to make investment recommendations that are suitable for their clients by performing a suitability assessment whenever: An advisor recommends a trade or accepts a trade instruction from you.
What is the purpose of the suitability test?
The main objective of performing the 'suitability test' is to obtain such information as is necessary for the Company to assess the investment objectives of the client, the client's financial ability to bear any related investment risks consistent with his investment objectives, and whether the client has the necessary ...
How is suitability of a client assessed?
The suitability assessment is based on information gathered from the client and product issuer. ... A thorough understanding of the client's personality, circumstances and goals is evaluated against the possible alternate courses of action — including, or not, a financial product.
Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.
