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What is the course syllabus?

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Lesson 1: What is Suitability (or the Suitability Rule?)

Topics covered in this chapter are:

  • Define suitability
  • Identify regulatory and legal responsibilities governing suitability
  • Understand how suitability expectations have and continue to evolve
  • Differentiate between suitability responsibilities arising from solicited versus unsolicited orders
  • Describe the differences between suitability responsibilities and fiduciary obligations
  • Describe the importance of suitability as it relates to clients, the public, regulators, the courts and other interested parties

Lesson 2: Suitability and the Know Your Client Rule

Topics covered in this chapter are:

  • Define the KYC Rule and describe how it relates to the ‘Know Your Product’ and Suitability rules
  • Describe why KYC is not limited to suitability
  • Describe how suitability factors into account type and general investment determinations
  • Understand the regulatory and legal standards for collecting and updating KYC information

Lesson 3: How do General Suitability Requirements Align with Investment Objectives, Risk Tolerance, and Time Horizon

Topics covered in this chapter are:

  • Identify key considerations when establishing a client’s investment objectives, risk tolerance and time horizon
  • Describe the regulatory requirements applicable to investment objectives, risk tolerance and time horizon
  • Understand the distinction between client and account level KYC information
  • List the various means to categorize and explain investment risk and related considerations