SIE practice questionmediumBest Interest Obligation
A broker recommends proprietary mutual funds over better-performing alternatives without disclosure. This violates:
- ASEC options reporting
- BOnly internal review policy
- CRegulation T
- DBest interest and suitability standards✓ Correct answer
Explanation
Why D — Best interest and suitability standards
Failing to disclose a conflict and not acting in the client’s best interest violates regulatory suitability and best interest rules. Reg T and options reporting are unrelated.
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