A broker or financial advisor is required to “know its customer” and to deal fairly with customers. A crucial element of this relationship is understanding the investor’s needs and providing the customer with financial products that are suitable for the investor. Factors that a broker should take into account when determining the suitability of an investment include knowing the investor’s age, financial situation and needs, long-term goals, income, education, investment sophistication, other investment portfolio, liquidity needs, and risk tolerance.
