What is the first action an adviser takes to ensure that their advice is suitable...

Suitability of Advice

The first step in providing suitable advice is understanding the client’s financial situation, goals, and risk tolerance.

This is achieved by gathering sufficient information through a fact-find process.

Why the Answer is C

Without detailed client information, advice cannot be tailored to individual circumstances, leading to regulatory non-compliance and potential mis-selling.

Why Other Options are Incorrect

A. Offer options: Comes later after understanding the client’s needs.

B. Cancellation period: A compliance requirement but irrelevant to suitability.

D. Third-party confirmation: Not a standard part of the advice process.

ICWIM Study Guide, Chapter on Client Engagement: Emphasizes information gathering as the first step.

FCA Suitability Guidelines: Highlights the importance of a thorough fact-find.

References