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Glossary

Suitability Assessment

The Suitability Assessment is the obligation of a financial services provider, before providing Investment Advice or Discretionary Asset Management, to ensure that the recommended service or financial instrument is appropriate for the client's financial situation, investment objectives, Risk Profile, and knowledge and experience (Art. 12 FinSA).

At a glance

01

The Suitability Assessment applies to Investment Advice and Discretionary Asset Management; it is more extensive than the Appropriateness Assessment and also considers financial affordability (Art. 12 FinSA).

02

If suitability cannot be established, the financial services provider may not provide the service or must explicitly inform the client of this.

03

The results of the assessment must be documented and made available to the client upon request.

Frequently asked questions

Yes, they differ. The Suitability Assessment (Art. 12 FinSA) is more extensive and applies to Investment Advice and Discretionary Asset Management: it takes into account investment objectives, financial situation, risk capacity, and the client's knowledge. The Appropriateness Assessment (Art. 11 FinSA) is narrower and only assesses knowledge and experience, not the client's overall financial position.

Part of the topic

Finanzberatung

Sources: FINMA · Systematische Rechtssammlung (fedlex)