Riscario

Due diligence means that the advisor has a reasonable basis for the recommendations made

• includes the duty to diagnose
  • obliged to gather and analyze all relevant information regarding your financial situation before making recommendations to you
• must ensure the recommendations are suitable with respect to
  • knowledge of your situation
  • legal, tax, business and economic aspects
• clearly and accurately describe to you
  • the conclusions about the your financial situation
  • the recommended strategies
  • the level and types of risks associated with the strategies
  • the method of compensation

Due diligence helps protect an advisor against legal action.

This brief summary cannot capture the variations for

• different designations
• different jurisdictions

This is primarily for residents of Ontario, Canada.