SIE practice questionhardFiduciary Duty - Conflict of Interest
If a registered rep makes recommendations involving securities for which the firm is a market maker, what must be disclosed to clients?
- AThe firm’s net capital
- BThe current unemployment rate
- CCustomer’s tax bracket
- DThat a potential conflict of interest exists✓ Correct answer
Explanation
Why D — That a potential conflict of interest exists
Conflicts of interest, like market making, must be disclosed. Unemployment rates, tax brackets, or firm net capital are not required for conflict disclosure.
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