Suitability assessment
A check that investment advice or portfolio management is suitable for a client’s knowledge, experience, finances and objectives.
A suitability assessment is required where a financial service provider gives personal investment advice covering a client’s portfolio or manages assets. The provider must obtain information on the client’s knowledge and experience, financial situation, investment objectives and risk tolerance, then assess whether the service or transaction fits those factors. In Switzerland, this duty is a core investor-protection element under financial services regulation. If sufficient information is unavailable, the provider may have to refrain from recommending or executing the relevant service in that advisory context.