SIE practice questionmediumFiduciary Duty in Account Types
An investment adviser opening a discretionary account for a client has what primary responsibility?
- AActing in the client’s best interest (fiduciary duty)✓ Correct answer
- BPrioritizing the firm’s proprietary trades
- CEnsuring the client only purchases mutual funds
- DMaximizing commissions
Explanation
Why A — Acting in the client’s best interest (fiduciary duty)
A fiduciary must act in the client’s best interest. B and D are conflicts of interest. C is incorrect; clients can own a range of products as suitable.
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