SIE practice questionmediumBest Interest - Broker-Dealer Obligations
A registered rep recommends an investment that pays a higher commission but is less suitable for the client. Which obligation has the rep failed to uphold?
- ABroker-dealer registration
- BCapacity as an agent
- CBest interest standard✓ Correct answer
- DAnti-money laundering compliance
Explanation
Why C — Best interest standard
Brokers must put the client’s best interest ahead of their own. Acting as agent, registration, and AML are all required but not directly relevant to this scenario.
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