Regulatory Alerts2017-07-31
Added · Updated
Guideline on Suitability of Clients’ Securities Transactions
Registrants must implement policies and procedures to assess the suitability of clients’ securities transactions by evaluating financial circumstances, risk tolerance, investment knowledge, and objectives. The guidelines classify clients into Professional, Sophisticated, and Retail categories, applying varying levels of due diligence based on the service type, such as discretionary management, advisory, or execution-only services. Registrants are required to conduct periodic reviews, document suitability assessments, and report to clients on the alignment of their investment activity with their stated profiles.
Topics
Share