Who must verify suitability when the execution-only provision is applied in a transaction?

In a transaction where the execution-only provision is applied, the adviser is responsible for verifying suitability. This provision typically indicates that the client has requested a specific transaction without receiving any advice from the adviser regarding the product or investment. Even in these situations, the adviser has a fundamental role in ensuring that the transaction aligns with the client's overall financial situation and objectives.

While the adviser does not provide personalized recommendations under execution-only terms, they still must ensure that the product is appropriate for the client based on the information gathered during initial interactions. This duty helps protect clients by ensuring that even when they choose to make decisions without advisement, the products they wish to purchase are fitting for their circumstances.

The responsibility of the adviser in this capacity is essential for client safety, and it helps maintain industry standards and regulatory expectations. Other parties, such as the client, the regulatory body, or the product issuer, do not hold the same level of accountability for verifying suitability in execution-only transactions.