SIE practice questionhardFiduciary/Best Interest
A broker ignores a client’s stated low-risk preference and recommends leveraged ETF products. Which regulatory principle is violated?
- AMargin account requirements
- BOnly prospectus delivery
- CSuitability and best interest obligations✓ Correct answer
- DRegulation D exemption rules
Explanation
Why C — Suitability and best interest obligations
Suitability and best interest require recommendations tailored to client needs and risk tolerance. Prospectus, margin, and Reg D pertain to other regulatory contexts.
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