Investor protection in sales · Question 4 of 12
What must a bank check before making a recommendation in investment advice?
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Answer
- D Whether the product suits the client's knowledge, finances and objectives
Explanation
In investment advice, the bank must check suitability. To do so, it asks, among other things, about knowledge and experience, the financial situation including the ability to bear losses, and investment objectives. It documents the result in a suitability statement.