Unsuitable Investing

You may hear about something being deemed an unsuitable investment.  This means that a broker recommends an investment without regard to the customer’s needs, objectives , or risk tolerance.

Brokers are duty bound to have a certain level of knowledge about their customer’s finances.  They should be recommending investment strategies based on that knowledge.

Unsuitability does not refer to a singular investment.  All investment carries some risk.  It’s more a case of promoting the wrong TYPE of investment, based on the customer’s profile.