Ohio National Financial Services, Unit XII: Securities and Variable Products

First of all, you must make sure the investor understands what it is that he or she is buying. This can be accomplished through a current prospectus and sales literature, which must be delivered prior to, or at the time of, any sales presentation. If recommending a mutual fund, you must point out to your client/prospect the fund's investment objective and policies, as well as the sales charges and annual fund operating expenses.

Secondly, you have a responsibility to ensure that the recommendation is suitable for the investor. This means that the recommended investment(s) should be suitable both for the investor's situation and for his or her needs and wants. You can fulfill this responsibility through the information gathering session where you get to know your clients/prospects, their situations and objectives. During this session is when you will complete the required suitability form, ONESCO-1. You also need thorough knowledge of the investment product(s) you are recommending. Only by knowing both your clients/prospects and your investment product(s) can you match a client/prospect's needs and wants to a suitable recommendation.

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.