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
- CBest interest standard✓ Correct answer
- DChurning
Explanation
Why C — Best interest standard
A registered representative making a recommendation is subject to the best interest standard under Regulation Best Interest. The rep must act in the retail customer's best interest and not place the rep's or firm's interests ahead of the customer's interests. Fiduciary duty is the investment-adviser framing, suitability is narrower, and churning is excessive trading.
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