5.2 Financial intermediaries may include banks, broker-dealers, investment advisers and financial planners. Because of the important role these parties play in the process of investment decision making by investors (e.g. by recommending CIS investments to investors), regulatory authorities may regulate these financial intermediaries in a number of ways. Regulation may encompass requirements that financial intermediaries meet certain competency standards such as qualification and training criteria. These criteria may include a specified level of education, financial or investment experience, professional examinations, membership of professional or other organizations, and continuing education requirements.

5.3 Alternatively, a regulatory authority may not impose specific qualifications on a class of financial intermediary, but rather may require that the qualifications of the person be disclosed to potential clients.

5.4 In addition, regulatory authorities may impose specific standards of conduct requirements on financial intermediaries when providing services to investors. For instance, a requirement that the financial intermediary make a determination that a particular CIS is a "suitable" investment based on the investment objectives and financial circumstances of the investor to whom the recommendation is made.

5.5 Some of the standards of conduct requirements imposed on financial intermediaries may be expressly incorporated in rules or legislation or may arise from a general duty of care owed to investors due to the fiduciary relationship that exists between the intermediary and investor. These standards of conduct may be enforceable by a regulatory authority, by a self­regulatory organization of which the financial intermediary is a member, or through private litigation against the intermediary for breach of the standard of conduct requirement.

5.6 Where there is a "suitability requirement" imposed on a financial intermediary, the regulatory regime may require that the financial intermediary obtain information from a client sufficient to make a suitability determination before providing any investment advisory services and as appropriate thereafter. Relevant information may include the investor's investment objectives, risk tolerance, investment time horizon, and the relationship of the proposed CIS investment to the investor's individual portfolio.

5.7 Again, the financial intermediary's obligations may vary depending on the sophistication of the customer and the specific transaction. For example, financial intermediaries selling CIS units to elderly, retired or first­time investors may have heightened obligations with respect to ensuring that a particular CIS product is appropriate for the investor. On the other hand, the processes that need to be followed when dealing with institutional clients that have a high degree of financial sophistication may be different.