Investment Suitability | AIMR Standards | CFA® Level 1

Consideration of Investment Suitability

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Question

Which of the following AIMR Standards states that a financial analyst must consider the suitability of an investment for each client or portfolio before undertaking investment action?

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A. B. C. D.

A

Standard IV (B.2) - Portfolio Investment Recommendations and Actions states: "Members shall consider the appropriateness and suitability of investment recommendations or actions for each portfolio or client. Members shall not make a recommendation unless they reasonably determine that the recommendation is suitable to the client's financial situation, investment experience and investment objectives."