Tools & Resources Suitability Assessment: An Indicative Board-Approved Policy Example

Suitability Assessment: An Indicative Board-Approved Policy Example

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An Indicative Board-Level Policy for Assessing Appropriateness can cover every aspect of product sale and post-sale servicing, as well as ex-post customer protection measures internal to the business. Here, you can see an example of what such a policy might look like. 

Board-Approved Suitability Assessment Policy 

1. Reasonable steps must be taken to collect detailed information about the current financial status of the provider’s clients. This should include information on the following that must involve a physical visit to the customer’s residence:

  • Assets
  • Liabilities
  • Income
  • Expenses
  • Objectives and needs of the customer.

This information should be updated on an annual basis, or at the time of product recommendation or sale, whichever is earlier.

 

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