Mrs. H is a retiree with a modest pension income and no investments, apart from a small amount in a savings account. When her husband passed away, she received money from a life policy. When visiting her local bank branch to deposit a cheque, Mrs. H was invited to speak to a financial advisor, to discuss how she could get a better return on her savings. The financial advisor, without considering Mrs. H's financial needs or if the investment option was suitable, recommended that she invest three-quarters of her money in the stock market. Two years later, Mrs. H found out that the value of her shares was worth only two-thirds of the original investment. She complained that she did not want to take any risks with her savings, and that the financial advisor did not warn her about the possibility of losing money. What does this case demonstrate? 

More than one option can apply. 

Financial advisors must always conduct a proper needs analysis and ensure that all products and services offered, are suitable to a client's needs. 

Financial advisors must consider a client's risk profile when giving financial advice. 

None of the Above