SIE practice questioneasyFiduciary Duty
A registered representative who recommends a product solely because it pays the highest commission is violating:
- APortfolio diversification
- BRegulation Best Interest✓ Correct answer
- CBlue sky laws
- DThe Bank Secrecy Act
Explanation
Why B — Regulation Best Interest
Regulation Best Interest requires a broker-dealer or registered representative making a recommendation to act in the retail customer's best interest and not place the representative's financial interest ahead of the customer's interest.
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