SIE practice questioneasyFiduciary Duty
A registered representative who places trades that are most advantageous to the client is upholding which standard?
- ASuitability standard
- BFiduciary duty✓ Correct answer
- CBest interest standard
- DChurning
Explanation
Why B — Fiduciary duty
Fiduciary duty requires acting in the best interests of the client. The suitability standard requires recommendations to suit the client, and the best interest standard is related but broader. Churning means excessive trading, which is unethical.
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