Moondog
Term

Suitability

Also: MiFID suitability

The regulatory duty to ensure advice fits the client's circumstances and objectives.

Under MiFID II, advice must suit the client's knowledge, experience, financial situation and goals. Reproducible figures and a complete record make suitability something a firm can evidence, not merely assert.

Suitability is the client's protection and the firm's obligation, and it is only as good as the record behind it. The practical takeaway for families is to expect, and to keep, evidence of why advice fits their situation. Advice that cannot be explained against a documented policy is worth questioning.

Related terms

Alternative investments Assets beyond listed equities and bonds, such as private markets, real assets and hedge funds. Asset allocation How a portfolio is divided among asset classes such as equities, bonds and alternatives. Benchmark A reference index used to judge a portfolio's performance and risk. Beta A measure of how much an asset moves with the broader market. Capital market assumptions Forward-looking estimates of return, risk and correlation for each asset class. Capital preservation An objective that prioritises protecting wealth over growing it.

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