Suitability of a Life Settlement for a particular client is vital. Welcome Life Securities has developed a comprehensive evaluation form designed to ensure that referring broker dealers properly understand and ask the appropriate questions so that suitability for each transaction is verified.
Before recommending the purchase, sale or exchange of a security, members must have a reasonable basis for believing that the transaction is suitable to the customer. Suitability factors that are considered may include, but are not limited to:
- Tax status
- Investment objectives
- Customer's financial status
- Costs associated with life settlement transactions
- Customer's continued need for coverage or plans to replace the existing policy with another policy, the availability, adequacy and cost of comparable coverage
- Other relevant information, including reason for sale