SIE practice questioneasyFiduciary Duty
A registered representative must put the client's interests ahead of their own. This duty is known as:
- ABest execution
- BRegulation Best Interest obligation✓ Correct answer
- CMargin maintenance
- DSuitability requirement
Explanation
Why B — Regulation Best Interest obligation
For a broker-dealer recommendation, putting the retail customer's interests ahead of the rep's or firm's interests is the Regulation Best Interest obligation. Best execution concerns order handling, margin maintenance concerns margin equity, and suitability is related but narrower than the current best-interest standard.
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