Glossary · concept
Suitability
Also known as: know-your-customer, KYC
- Definition
- Suitability is the regulatory standard requiring financial advisers to assess whether a recommended product matches the client's risk tolerance, financial situation, investment knowledge, and objectives. Documented via a Suitability Assessment.
Singapore's Financial Advisers Regulations require licensed advisers to complete a documented Suitability Assessment before recommending products. The assessment captures the client's financial profile, knowledge, investment objectives, and risk tolerance. Reviewed periodically and updated on material changes. Distinct from fiduciary-tier obligations — suitability is the floor, fiduciary is the ceiling.
Source: MAS Financial Advisers Regulations
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