(1) Investment firms shall obtain from clients or potential clients such information as is necessary for the firm -
(a) to understand the essential facts about the client, and
(b) to have a reasonable basis for believing, giving due consideration to the nature and extent of the service provided, that the specific transaction to be recommended, or entered into in the course of providing a portfolio management service, satisfies the following criteria:
(i) it meets the investment objectives of the client in question;
(ii) it is such that the client is able financially to bear any related investment risks consistent with the client's investment objectives;
(iii) it is such that the client has the necessary experience and knowledge in order to understand the risks involved in the transaction or in the management of the client's portfolio.
(2) Where an investment firm provides an investment service to a professional client, the firm is entitled to assume that, in relation to the produc