Laws & RegulationsPregunta 77 de 110
Under the Investment Advisers Act of 1940, an investment adviser owes clients which standard of care?
a.A fiduciary duty to act in the client's best interest
b.A mere suitability standard with no loyalty obligation
c.No duty beyond executing trades promptly
d.A duty only to disclose commissions
Explicación
The Investment Advisers Act of 1940 imposes a fiduciary duty on investment advisers, requiring them to act in their clients' best interests and to place client interests ahead of their own. This includes duties of loyalty and care and full disclosure of material conflicts. It is a higher standard than the suitability obligation historically applied to broker-dealers.
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