In an execution-only Tracker Bond arrangement, what warning must Peter give in writing?

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

Answer: (C)

In an execution-only arrangement, the adviser is not providing advice or making a determination about whether a product is suitable for the client. If the client hasn’t supplied enough information to judge suitability, the adviser must clearly document in writing that there is insufficient information to determine suitability. This warning protects both the client and the adviser by making explicit that a proper suitability assessment cannot be performed with the information available.

That’s why the best answer is that Peter has insufficient information to determine the suitability. It directly addresses the key point: without enough details about the client’s objectives, financial situation, and needs, a determination of whether the Tracker Bond is suitable cannot be made.

The other options aren’t required warnings in this context. Saying there is no recourse to the Ombudsman or that Peter will never be able to advise in the future introduces unrelated implications, and saying there is no need to warn about suitability would be misleading in an execution-only setup where information gaps prevent a proper assessment.