SIE practice questioneasySuitability
A registered representative must ensure that a recommendation for a client is:
- ALikely to generate high commissions
- BSuitable based on the client’s financial profile and objectives✓ Correct answer
- CApproved by the branch manager only
- DBased on firm promotions
Explanation
Why B — Suitable based on the client’s financial profile and objectives
FINRA’s suitability rule requires that recommendations are appropriate for each customer’s situation. Recommendations should not be driven by commissions, promotions, or solely management approval.
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