Risk profiling: advisers must assess client capacity and ensure tools and questionnaires are fit and transparent. Investment advisers must collect client personal and financial information, assess the client's willingness and capacity to accept loss, and interpret responses appropriately. Any risk profiling tools must be fit for purpose and limitations mitigated; questionnaires must be clear and non leading. The adviser must communicate the client's risk profile after assessment and periodically update client information and risk assessments.