Geoff has asked Peter to arrange a Tracker Bond investment for him on an execution- only basis. What warning, if any, MUST Peter give to Geoff in writing?

• A. None.
• B. Geoff will not have recourse to the Financial Services and Pensions Ombudsman.
• C. Peter has insufficient information to determine the suitability of the investment.
• D. Peter will not be able to advise Geoff in the future.

Answer: (C)

Execution-only dealings mean the adviser isn’t giving advice or assessing whether a product fits the client’s needs. Because Peter is arranging Geoff’s Tracker Bond without advice, he hasn’t evaluated Geoff’s objectives, risk tolerance, or overall financial situation. The required written warning is that Peter has insufficient information to determine the suitability of the investment. This puts Geoff on notice that the product may or may not be appropriate for him and that Peter has not performed a suitability assessment.

Why this is the best choice: it directly reflects the reality of an execution-only service—the adviser cannot judge suitability and must disclose this limitation in writing. The other statements aren’t required warnings in this context: ombudsman recourse still exists, the adviser’s future ability to provide advice isn’t the issue, and saying there is no warning at all would be inaccurate.