How often must Members and Candidates reassess the information gathered from clients?

The correct answer emphasizes the necessity for continual reassessment of client information. In the investment management industry, especially in alternative investments, client circumstances can change frequently due to shifts in financial situations, regulatory environments, market conditions, or personal goals. Regular reassessment ensures that the investment strategy remains aligned with the client's current needs and preferences.

This ongoing process is vital to fiduciary duty and helps in maintaining trust and effective communication between the advisor and the client. By conducting regular updates, Members and Candidates can provide advice tailored to the current situation, ensuring compliance with regulatory requirements and ethical standards.

The other options present limited or infrequent approaches to client information assessment. Relying solely on an initial assessment ignores the dynamic nature of financial situations and can lead to mismatches between client expectations and actual investment performance. Limited assessments only on client request can also risk the advisor missing critical updates relevant to compliance or investment strategy adjustment. Lastly, assessing every five years fails to capture the need for responsiveness to more immediate changes in a client’s circumstances, which could drastically affect their financial objectives and risk tolerance.