← All terms
KYC and Suitability

Suitability Determination

The account-level obligation to recommend only suitable investment actions.

Definition

Under CIRO Rule 3402 (post-CFR), suitability is assessed at the account level, not just per-trade. The registrant must determine that any recommendation puts the client's interest first given the client's KYC profile and the firm's KYP analysis. The five suitability factors: KYC information, KYP information, account-as-a-whole impact, costs, and reasonable range of alternatives.

Source

CIRO IDPC Rule 3402; Client Focused Reforms (CFR)

Where this shows up on the CIRE

AI case study

See how Suitability Determination applies in practice

One named-role scenario with realistic numbers and the rule citation.

Want this kind of explanation on every wrong answer?

The Ciroexam AI tutor is grounded in the same primary sources you see cited above. Every wrong practice answer gets the rule that the distractor was testing.