DIN SPEC 77223:2016-02

This DIN SPEC in accordance with the PAS procedure was developed within a workshop set up on a temporary basis. The DIN SPEC was developed and approved by the authors named in the foreword. This DIN SPEC defines a procedure to provide a standardized process for choosing suitable investment products as part of a structured investment plan. The process helps financial advisors and individuals in private households select investment products that will enable them to achieve their financial goals with the maximum possible financial security. The aim is to avoid making the wrong decisions and to recognize the potential risk of an unsatisfactory return on investment before purchasing the product. The document takes into account the relevant legislation such as the Wertpapierhandelsgesetz (Securities Trading Law) and the Finanzanlagenvermittlungsverordnung (Financial Investment Brokers Ordinance). The main focus is on evaluating the individual appropriateness and suitability of investment products for private households, taking into consideration individual lifestyles and situations. This involves looking at clients' financial situation from a holistic perspective, making an inventory of the clients' personal situation, goals and preferences and combining this with a superordinate investment strategy. This approach generally works better than a 'singular' investment recommendation.