Business PracticesPregunta 85 de 100
A client loses money on a trade the agent recommended. To keep the client from complaining, the agent quietly writes a personal check covering the loss and tells no one at the firm. The agent has:
a.Resolved the matter appropriately at his own expense
b.Acted properly because the client suffered no net loss
c.Committed a prohibited practice by settling a complaint without the firm's knowledge and effectively guaranteeing the customer against loss
d.Acted properly because no securities were involved in the payment
Explicación
Reimbursing a customer for losses out of personal funds both conceals a potential complaint from the firm's supervisory system and operates as a guarantee against loss, each of which is an unethical practice. The firm must be able to review the underlying recommendation and record the complaint. Making the client whole financially does not cure the concealment.
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