Business PracticesCâu 67 / 100
Which statement best distinguishes the duties of an investment adviser from those of a broker-dealer effecting transactions for a customer?
a.An investment adviser is a fiduciary owing duties of loyalty and care, including full disclosure of material conflicts, while a broker-dealer's recommendations must at a minimum be suitable for the customer
b.A broker-dealer is always a fiduciary and an adviser is not
c.Neither owes any duty beyond executing orders accurately
d.An adviser owes duties only to institutional clients
Giải thích
The advisory relationship rests on a fiduciary standard: the adviser must place the client's interests first, disclose material conflicts such as compensation arrangements and proprietary products, and seek best execution. A broker-dealer making recommendations must have reasonable grounds to believe they are suitable and must disclose material facts about the transaction. Both roles carry duties well beyond accurate order entry, and fiduciary status does not depend on the client being institutional.
Trích dẫn luật: NASAA Model RuleLuyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- An agent tells a prospect, 'My state registration means the Administrator has reviewed my qualifications and approved the investments I recommend.' This statement is:
- Two traders repeatedly buy and sell the same thinly traded security between themselves at rising prices to attract outside buyers. This conduct is:
- Before recommending a security to a new customer, an agent must:
- A broker-dealer sells a customer bonds out of the firm's own inventory. Which disclosure obligation applies?
- A broker-dealer decides to raise its account maintenance and transfer fees substantially. Under NASAA rules, the firm:
- A broker-dealer publishes a market letter recommending a stock in which it holds a substantial proprietary position and for which it makes a market. The letter must:
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