What does 'suitability' require of an investment adviser when making a personal recommendation?
-
A
The adviser must recommend the cheapest available product
-
B
The adviser must gather sufficient information about the client's financial situation, investment objectives, risk tolerance, capacity for loss, and knowledge and experience to ensure the recommendation is appropriate for that specific individual
-
C
The adviser must demonstrate that the investment has outperformed the FTSE 100 over the past five years
-
D
The adviser must obtain the client's signed approval before making any recommendation