What can a Dealer Representative do if they identify that a client does not qualify for an investment?

When a Dealer Representative identifies that a client does not qualify for a particular investment, the appropriate course of action is to offer products that do not require qualification. This approach aligns with the regulatory requirement to ensure that clients are matched with suitable investments based on their financial situation and investment experience.

Offering products that do not require qualification allows the Dealer Representative to respect the client's needs while still providing them with suitable options. These products are typically designed to be accessible to a wider range of clients, ensuring that they can still participate in the market in a manner that is appropriate for their circumstances. It also helps protect both the representative and the client by preventing potential mismatches between investment risk and client risk tolerance.

In contrast, advising on more complex investment strategies might not be suitable for someone who does not meet the qualifications, as it could further complicate their financial situation. Insisting that the client take the risk disregards the representative's duty to prioritize the client's best interests. Similarly, obtaining approval for all future purchases does not address the immediate concern of ensuring the client’s current investment choices are appropriate, and it does not facilitate responsible investment practices.