SIE practice questionhardAccount Types – Suitability and Best Interest
When opening a brokerage account, a registered representative's most important requirement is to:
- AEnsure recommendations are in the customer's best interest✓ Correct answer
- BEnsure the customer has a margin account
- CEnsure the customer trades only mutual funds
- DMaximize commissions for the firm
Explanation
Why A — Ensure recommendations are in the customer's best interest
Suitability and best interest obligations require recommendations to match the customer’s objectives and risk tolerance. Margin accounts, mutual fund trading, and maximizing commissions are not primary requirements.
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