Factfinding is also known as?

• A. Suitability
• B. Know the client
• C. Appropriateness
• D. Treating the client fairly

Answer: (B)

Factfinding is primarily referred to as "Know the client." This term emphasizes the importance of gathering comprehensive information about a client's financial situation, needs, goals, and risk tolerance in order to provide suitable financial advice and products. The process of understanding a client’s circumstances is critical for ensuring that the advice offered aligns with their unique situation, thereby facilitating a tailored approach to financial planning.

The practice of knowing the client helps in establishing a strong relationship built on trust, which is essential for effective communication about their financial needs. It allows advisors to recommend products and strategies that truly fit the client's profile. This thorough approach also aids in protecting the client’s interests by ensuring that they are placed in appropriate financial solutions.

Other terms like suitability, appropriateness, and treating the client fairly relate to aspects of the advisor-client relationship and compliance with regulations, but they do not capture the essence of the initial data-gathering process as effectively as "Know the client" does.