Who's responsible for what?
When you work with an investment advisor, you each play a part in making sure that you receive appropriate advice and buy suitable investments.
Advisor
Your advisor has very definite responsibilities to you as a client. These are set out in the rules for advisor conduct and business practices. They include knowing who you are, recommending suitable investments, dealing fairly and honestly with you, and providing you with accurate information about your investment decisions and the status of your portfolio.
The advisor’s know your client 
obligations require them to conduct an in-depth interview with you to gather information about your income, expenses, assets, liabilities, goals, and risk tolerance. They should update this information whenever your circumstances change.
The advisor's suitability obligations require them to understand fully the products they recommend and trade on your behalf. Your advisor should know each product well enough to explain it to you and answer all your questions about its risks, key features, and initial and ongoing costs and fees. Remember: No matter how knowledgeable the advisor is about a product, it is only suitable for you if it supports your investment goals and fits your risk profile.
A good advisor will not dodge your questions. They should always be willing to explain things in a way that make sense to you. If this isn’t the case, consider finding another advisor.
Client
Your responsibility as a client is to play an active role in understanding your investments and managing your relationship with your advisor. You should also make sure that each of your investments contributes to your investment goals and that your portfolio remains within your risk tolerance. Be prepared to:
- Communicate clearly with your advisor about your financial situation, investment goals, and risk tolerance
- Read all research materials your advisor provides and do additional research on your own
- Ask questions (and keep asking questions) until you fully understand each investment you make and how it fits into your investment goals
- Thoroughly consider every purchase or sale decision that your advisor recommends to satisfy yourself that the timing and costs are in line with the proposed opportunity
- Pay attention to the information you receive from your advisor, especially your statements. Make sure you read them and check that the only transactions that appear are ones that you approved
- Act quickly if you notice an error on your statement, as some firms have a limited period of time in which to make corrections
If you’re not sure about any investment, consider asking for a second opinion from another qualified professional, such as a tax accountant, lawyer, or financial planner holding a professional designation.