What kind of documentation is needed to support suitability of financial recommendations? Dennis Groner, a Livingston, N.J. compliance consultant, suggests the following:
1) The information collected on the consumer’s personal and financial goals, objectives, needs, and the consumer’s financial situation, including other life insurance, annuities, etc. owned by the consumer.
2) The information collected on the consumer’s personal situation, including outstanding personal, family and health issues.
3) Copies of any important client information, such as listings of investments, assets, etc. that were used in reaching a recommendation.
4) The names and responsibilities of any consumer advisors involved in the sales process and copies of information provided by the consumer’s advisors.
5) Information on tax implications that were included in the analysis used to reach a recommendation.