What does the suitability process help determine?

The suitability process is a critical component in the investment advisory landscape, as it focuses on assessing whether a specific investment product aligns with an investor's individual circumstances, including financial situation, investment goals, risk tolerance, and time horizon. By determining the appropriateness of the investment product, the suitability process ensures that recommendations made by financial advisors or representatives are tailored to meet the specific needs of the client. This personalized approach aims to protect investors from making unsuitable investments that could jeopardize their financial well-being.

In contrast, evaluating average market performance, investor eligibility, or compliance with regulations does not directly pertain to ensuring that a specific investment product is right for an individual investor. While these aspects may be relevant in a broader financial context, they do not encapsulate the personalized assessment that the suitability process aims to achieve.