Under the Consumer Protection Code, when dealing with an elderly client, the adviser must?

• A. Only recommend risk-free investment
• B. Take his age into account when determining suitable products
• C. Deal with the client on an execution-only basis
• D. Not arrange a financial product for the client until at least ten working days after providing a written recommendation

Answer: (B)

Taking age into account is essential for determining suitable investments. As clients grow older, their financial needs, time horizon, income requirements, and capacity to endure market fluctuations often change. An adviser must tailor recommendations to these life-stage factors, prioritising appropriate risk levels, potential income, and capital preservation where warranted. The Consumer Protection Code expects the advice given to reflect the client’s personal circumstances—age being a key factor—so the chosen product truly fits the elderly client’s situation.

Why this is the best fit: considering age directly affects how suitable an investment is, it ensures the recommendation aligns with the client’s likely goals and constraints over their remaining years. This isn’t about forcing risk-free options, which aren’t always available or appropriate, but about aligning risk, returns, and liquidity with the client’s age and circumstances.

Why the other approaches don’t fit: insisting only on risk-free investments ignores reality and the need for growth or income in many cases; treating the client on an execution-only basis bypasses the suitability assessment required by the code; and imposing a fixed ten-working-day waiting period after a written recommendation isn’t a standard CPC rule and could hinder timely, appropriate decisions.