A client requests to execute a trade that their investment advisor believes is unsuitable given their risk profile and investment objectives. According to CIRO rules, what is the most appropriate course of action for the advisor?

Question: A client requests to execute a trade that their investment advisor believes is unsuitable given their risk profile and investment objectives. According to CIRO rules, what is the most appropriate course of action for the advisor?

Answer options:

• Execute the trade immediately as instructed, as the client is sovereign.
• Refuse the trade outright and close the client's account. ✅ Inform the client of the unsuitability, document the conversation and the client's decision, and then proceed with the trade if the client insists and signs a waiver if required by firm policy.
• Delay the trade indefinitely until the client changes their mind.

Correct answer: Inform the client of the unsuitability, document the conversation and the client's decision, and then proceed with the trade if the client insists and signs a waiver if required by firm policy.

Explanation: CIRO's suitability requirements dictate that advisors must ensure recommendations are suitable. If a client insists on an unsuitable trade, the advisor must clearly explain the risks and unsuitability, document the objection and the client's instruction, and often obtain written acknowledgement before proceeding.