What must Members and Candidates do before making investment recommendations?

Before making investment recommendations, it is essential for Members and Candidates to perform a reasonable inquiry into a client's financial situation. This inquiry involves assessing the client's financial status, investment objectives, risk tolerance, and any other pertinent factors that may influence their investment decisions. By conducting this thorough investigation, investment professionals can tailor their recommendations to align with the client's unique circumstances and needs, thereby acting in the client's best interests.

This approach ensures that recommendations are not only suitable and appropriate but also responsible and ethical. It takes into consideration the broader context of the client's financial life, rather than relying on superficial factors or trends, which could lead to misaligned or unsuitable investment choices. Understanding a client's financial situation creates a foundation for trust and confidence, as it reflects the professional's commitment to acting responsibly and ethically in the client's interest.