Laws & Regulations第 22 / 100 题

An IAR recommends a securities transaction that will generate a large commission for the IAR's affiliated broker-dealer. To act ethically, the IAR must at minimum:

a.Avoid mentioning the arrangement to keep the client calm
b.Cancel the transaction entirely
c.Increase the client's fee to offset the conflict
d.Disclose the conflict of interest so the client can make an informed decision

解析

A fiduciary must disclose material conflicts of interest, such as additional compensation to an affiliate, so the client can evaluate the recommendation. Concealment violates the duty of loyalty. Disclosure, not necessarily cancellation, is the baseline requirement, though the recommendation must still be in the client's best interest.

法律依据: Uniform Securities Act

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