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Academy/DFSA Compliance Series/Chapter 3
Chapter 3 · Conduct of Business (COB) & Client Protections

Suitability vs. Appropriateness Assessments

Episode 03.2 · DFSA Compliance Series

About this episode

What is the operational difference between a suitability test and an appropriateness test?

Suitability applies when advising or managing a portfolio — firms must verify the product matches the client's risk, goals, and net worth. Appropriateness applies to execution-only trading, where firms need only confirm the client's knowledge and experience.

Episode 3.2 — Chapter 3: Conduct of Business (COB) & Client Protections | DFSA & DIFC Compliance Masterclass series.

Follow @arakan-forensic for the next episode as this series continues, chapter by chapter.

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