SIE practice questionmediumFiduciary Duty
A registered representative making a trade unsuitable for a client violates which duty?
- ABest execution requirement
- BMarket order priority
- CFront-running
- DSuitability / best interest obligation✓ Correct answer
Explanation
Why D — Suitability / best interest obligation
An unsuitable recommendation or trade recommendation violates the registered representative's suitability and best-interest obligations. Best execution concerns trade handling, market order priority is not the standard at issue, and front-running is trading ahead of a customer order.
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