SIE practice questioneasyFiduciary Duty
A registered representative who recommends a product solely because it pays the highest commission is violating:
- APortfolio diversification
- BFiduciary duty✓ Correct answer
- CBlue sky laws
- DThe Bank Secrecy Act
Explanation
Why B — Fiduciary duty
Fiduciary duty requires putting clients’ interests first. Portfolio diversification, blue sky laws, and the Bank Secrecy Act do not address conflicts of interest in recommendations.
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