Where CPC's execution-only provisions apply to an investment transaction, the adviser involved is required to:

• A. Neither charge a fee nor take a commission in relation to the transaction.
• B. Carry out a prior suitability check of the product, and refuse to arrange the transaction if the product is not suitable for the client.
• C. Warn the client in writing that they do not have the information necessary to determine the suitability of the product for the client.
• D. Review the product's ongoing suitability for the client on a regular basis, no less frequently than every quarter.

Answer: (C)

When a service is execution-only, the adviser is not providing advice or assessing the product’s suitability for the client. The safety net in CPC’s execution-only provisions is that the adviser must clearly inform the client, in writing, that the adviser does not have the information necessary to determine whether the product is suitable for the client. This written warning makes the client aware that the decision is their responsibility and that professional suitability assessment has not been performed.

This is why the best choice is to warn the client in writing about the lack of information to determine suitability. The other possibilities would imply duties that don’t apply in an execution-only context: carrying out a prior suitability check, ongoing suitability reviews, or forbidding fees or commissions, which aren’t required by execution-only rules and would go beyond the scope of simply executing a trade.