Handling a family member’s account

SOME people prefer that their personal matters including investment management be handled by individuals or groups who are not family members, relatives or friends. They are well aware of the downsides involved.

Nevertheless, there are also individuals who are open to family members or someone they know handling their personal investment matters. This is probably more common in developing Asia and perhaps Singapore. It is not unusual for a wealth manager to manage his or her parents’ funds, for example. And in such instances, there are assessment aspects to take note of including suitability of investment products and related issues.

The Suitability Standard

CFA Institute is the global association of investment professionals that sets standards for professional excellence and credentials. As an association for investment professionals, the institute, under its Suitability Standard, requires that finance professionals who are in an investment advisory relationship with clients (including fee-paying family members) consider carefully the needs, circumstances, and objectives of the clients when determining the appropriateness and suitability of an investment or course of investment action.