Finalised guidance Assessing suitability

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Financial Services AuthorityFinalised guidanceFinancial Services AuthorityPage 1of 31March 2011Assessing suitability :Establishing the risk a customer is willing and able to take and making a suitable investment selectionContents1 Our Establishing the risk a customer iswilling and able to Investment Adopting third-party Summary of changes to final guidance as a result of guidanceAssessing suitability : Establishing the risk a customer is willing and able to take and making a suitable investment selectionFinancial Services AuthorityPage 2of 311Overview high number of unsuitable investment selections1we see in the pensions and investment markets is still a significant concern, as highlighted in the Financial Risk Outlook Retail Intermediaries Sector Digest is a specific risk to our consumer protection Conduct of Business sourcebook (COBS) requires a firm to take reasonable steps to ensure that a personal recommendation, or decision to trade, is suitable for its customer.

1.18 Firms remain responsible for assessing suitability, including assessing the risk a customer is willing and able to take, even when using tools. Tool providers have a role to provide clear supporting information to firms that will use the tools, to help them use them as designed (see Chapter 5). Next steps

  Assessing, Supporting, Suitability, Assessing suitability, For assessing suitability