Optional customer information

Firms must ask for many pieces of information when an account is opened, but some items are voluntarily provided. In particular, suitability questions are always optional for a customer to answer.

Suitability questions include:

• Investment objective
• Risk tolerance
• Investment experience
• Investment goals
• Marital status
• Annual income
• Net worth
• Tax status
• Liquidity needs
• General financial situation

Obviously, items like annual income and net worth may be sensitive information for a customer to provide. However, the firm requires this information in order to make proper recommendations to their customers. Recommendations may only be made if the firm feels like it fully understands the customer’s financial situation.

If the customer refuses to provide answers to suitability questions, the firm will be unable to recommend or suggest specific investments. Essentially, all of the customer’s trades must be unsolicited and submitted without the firm’s guidance.