Appropriateness assessment

An appropriateness assessment focuses on the client’s knowledge and experience with the type of financial instrument or service offered. It is generally relevant for transaction-related investment advice that does not assess the whole portfolio. Unlike suitability, it does not require a full assessment of financial situation and investment objectives. Under Swiss financial services rules, if a product or service is not appropriate or the provider lacks sufficient information, the client must be warned. Execution-only services may be exempt in defined circumstances.