For a wealth manager to be able to give investment advice to a client, the client has to undergo suitability and appropriateness assessments first. Suitability requirements include checking the client's knowledge and experience, their financial situation, and their objectives. Appropriateness requirements also includes understanding the client's relevant knowledge and experience in certain financial instruments. Their past performance enables the wealth manager to judge whether the financial services and instruments envisaged for the client are appropriate for them.
Key learning objectives:
Understand the Suitability Assessment requirements and how is it performed
Understand the Appropriateness Assessment requirements and how is it performed
Understand the Investment Advice record keeping requirements for Wealth Management firms