![[Series 65] 40, Suitability and Know Your Customer](https://artwork.captivate.fm/abe4183a-4dfa-4a03-97da-92d15c5d473d/_bZUi6Yzjq6h3zQu_ZsaQB5Y.jpeg)
[Series 65] 40, Suitability and Know Your Customer
From Open Exam Prep by Ran Chen, EA, CFP®
May 3, 2026 · 3 min
About this episode
This episode discusses the Know Your Customer rule and the fiduciary standard for Investment Adviser Representatives.
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - That the Know Your Customer (KYC) rule requires gathering all relevant financial information before making any recommendations. - Why Investment Adviser Representatives (IARs) are held to a fiduciary standard, which is a higher legal duty than the suitability standard. - How a recommendation can be technically "suitable" but still violate the fiduciary standard if it is not in the client's absolute best interest. - That an IAR is prohibited from making recommendations if a client fails to provide sufficient personal and financial information. - How to properly handle an unsolicited client order for an investment that the IAR deems unsuitable. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
People in this episode
Host: Ran Chen
Topics covered
- Know Your Customer
- fiduciary standard
- investment recommendations
- financial information
- suitability standard
Keywords
- KYC
- fiduciary duty
- investment advice
- financial recommendations
- client information
Mentioned in this episode
Organizations: Open Exam Prep, YouTube Channel
Products: EA license, Insurance and Securities licenses, CFP® designation, Series 6, Series 63, Series 65
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