An agent negligently recommends unsuitable, high-risk options strategies to a novice client, resulting in substantial losses. There is no intent to defraud. Which statement BEST reflects the USA’s view?

1. AThe agent can be held liable for unsuitable recommendations, even absent fraud✓ Correct answer
2. BThe agent is only liable if fraud is proven
3. CNegligent recommendations are not prohibited
4. DOnly the broker-dealer would be liable

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