SIE practice questionmediumSuitability and Best Interest
A registered representative recommends a high-risk product to a conservative investor. Which rule is most likely violated?
- ARegulation T
- BSEC registration requirements
- CInsider trading rules
- DSuitability requirement✓ Correct answer
Explanation
Why D — Suitability requirement
Suitability requires recommendations be appropriate for the investor’s profile. SEC registration relates to issuers, insider trading covers misuse of information, and Regulation T covers margin requirements.
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