What is a suitability requirement?
The suitability rule generally requires broker-dealers to use reasonable diligence to seek to obtain and analyze the customer-specific factors listed in the rule. A broker-dealer cannot make assumptions about customer-specific factors for which the customer declines to provide information.
What are the main suitability obligations?
Suitability obligations are critical to ensuring investor protection and promoting fair dealings with customers and ethical sales practices. This is based on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.
What is suitability investment?
A suitable investment is defined as one that is appropriate in terms of an investor’s willingness and ability (personal circumstances) to take on a certain level of risk. Both of these criteria must be met. If an investment is to be suitable, it is not enough to state that an investor is risk-friendly.
How do you use suitability?
the quality of having the properties that are right for a specific purpose.
- We tried to assess his suitability for the job.
- There’s some doubt about his suitability for the job.
- Interviews allow you to assess the suitability of candidates.
- His suitability for the job is open to question.
What is suitability determination?
“Suitability” refers to a person’s identifiable character traits and conduct sufficient to decide whether employment or continued employment would or would not protect the integrity or promote the efficiency of the service.
What is suitability risk?
Loss that occurs when clients are mismatched with investment opportunites.
How would you define suitability of product or service?
Suitability is defined as the degree to which the product or service offered by the intermediary matches the retail client’s financial situation, investment objectives, level of risk tolerance, financial need, knowledge and experience .
What is a suitability assessment analysis?
Suitability Analysis allows you to identify the most suitable sites from a set of candidates, as defined by applying a set of individually weighted criteria.
What is a site suitability analysis?
Site selection or suitability analysis is a type of analysis used in GIS to determine the best place or site for something. Potential sites used in suitability analysis can include the location of a new hospital, store or school among many others.