SIE practice questionmediumBest Interest and Suitable Recommendations
A registered rep recommends only proprietary products to all new accounts without considering customer needs. What standard is the representative likely violating?
- AMargin requirements
- BBest interest (suitability) standard✓ Correct answer
- CJoint account rules
- DInsider trading rules
Explanation
Why B — Best interest (suitability) standard
Suitability and best interest require recommendations based on customer needs, not just firm interests. B, C, and D are unrelated.
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