Suitability
Recommendations must be appropriate to the client's investment experience, risk tolerance, financial position, and objectives.
Standard III(C) Suitability requires understanding each client’s needs, risk tolerance, and objectives; developing and periodically reviewing a written Investment Policy Statement (IPS) is best practice. Members managing to a stated mandate (e.g., an index or pooled fund) judge suitability against the fund’s stated objectives rather than an individual client IPS. The standard distinguishes advisory (each recommendation must suit) from portfolio management (each action must suit the overall portfolio).
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