1. There are two fundamental principles that establish whether advice given by a financial advisor is appropriate. To meet these principles advisors must:

a) Provide fee disclosure and full disclaimers to clients regarding the cost of advice, biases, and warnings

b) Provide Statements of Advice, Statements of Additional Advice, Statements of Limited Advice or Records of Advice whenever personal advice has been provided

c) Have clients undertake risk tolerance and longevity analysis and complete fact find before advice can be provided

d) Gather sufficient data to know the client and do sufficient research to know the product