Customer AccountsCâu 85 / 110
Before recommending a variable annuity to a retail customer, a representative must have a reasonable basis grounded in which information?
a.The customer's age, financial situation, tax status, investment objectives, time horizon, liquidity needs, and risk tolerance
b.The customer's credit score and employment history alone
c.The commission the product pays relative to alternatives
d.The performance of the separate account over the past 12 months
Giải thích
Suitability and best-interest obligations require the representative to gather and evaluate the customer's full investment profile before recommending a product. Compensation to the representative is a conflict to be managed, not a basis for a recommendation. Recent performance alone says nothing about whether the product fits this investor's needs.
Trích dẫn luật: FINRA RulesLuyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A 403(b) tax-sheltered annuity plan is available to employees of:
- A key characteristic of a SEP IRA is that:
- A customer receives a distribution check from a former employer's 401(k) plan and wants to move the money to an IRA. Which statement is correct?
- A 72-year-old retiree needs to draw income from a $60,000 lump sum within the next 12 months and has no other liquid savings. Which recommendation is least suitable?
- A 28-year-old contributing monthly to an IRA states that the goal is maximum long-term growth and that no withdrawals are planned for 30 years. The most appropriate recommendation is:
- A customer wants to park six months of living expenses where the money is safe and available on short notice. Which fund best matches that objective?
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Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Series 6 — Investment Company & Variable Contracts Rep · Quy trình kiểm tra