Gathering the Customer's Investment Profile
Chapters in this video
- 0:00 The "includes, but is not limited to" trap
- 1:58 Reasonable diligence and the three-step skip exception
- 3:09 Why waivers, signatures, and firm policies never work
- 4:05 Assessment versus recommendation: the trigger moment
- 4:49 Reg BI vs suitability: same facts, different label
- 5:43 Rapid-fire exam recap
What this video covers
- Why the investment profile is "includes, but is not limited to" the nine named facts, plus any other information the customer discloses
- When a representative may skip a profile fact, and why silent assumptions based on appearance or wealth always fail
- Why documented reasonable basis to skip a fact must be customer-specific, never a standing firm policy applied to everyone
- How account agreements, signed waivers, and firm policies cannot disclaim suitability responsibility under any circumstances
- The exact trigger that pulls a profile assessment inside the suitability rule: the addition of a recommendation of a particular security
- Why Regulation Best Interest (Reg BI) and the suitability rule demand the identical underlying facts despite different rule labels
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