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   Suitability Risk
   















 

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Suitability Risk

A reference to the possibility that a judge or regulator might set aside a risk management contract or void an instrument on the grounds that a counterparty was not capable of understanding its terms or that the contract was inappropriate to the counterparty's stated objectives.

For a regulatory insight on customer protection, see
"Key Risk Concepts: Customer Protection."

For a regulatory perspective of suitability risks, see
"Key Risk Concepts: Sales Practices"

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