As discussed in class, the suitability process consists of three components:

1. Know Your Client
2. Know Your Product
3. Assess Suitability

The first two steps are pretty straight forward and the MFDA requirements are quite clear for advisors. However, the third component, assessing suitability, is often a complex, multi-step process. It is also the step in the process that generates the most client complaints when clients suffer investment losses.

REQUIRED:

List and discuss three steps that the advisors should follow in the suitability process to ensure best practices were followed in an effort to avoid losses for the client.