# Suitability

*Professional & Ethics — Finicade finance glossary*

Suitability requires that a recommended investment fits the client's circumstances, objectives and risk tolerance. It's a lower bar than fiduciary duty: suitable means defensible for this client, while fiduciary means best for them, and the gap is exactly where commission-driven product sales live. Meeting it requires documented knowledge of the client, which is why the investment policy statement exists.

**Also known as:** suitability requirement, know your client, appropriateness

**Related terms:** [Fiduciary Duty](https://finicade.com/glossary/fiduciary-duty), [Investment Policy Statement (IPS)](https://finicade.com/glossary/ips), [Risk Tolerance](https://finicade.com/glossary/risk-tolerance), [Conflict of Interest](https://finicade.com/glossary/conflict-of-interest), [Disclosure](https://finicade.com/glossary/disclosure)

Source: https://finicade.com/glossary/suitability