SIE practice questioneasySuitability
Which best describes a registered representative's obligation regarding investment recommendations?
- ARecommendations must be suitable for the client’s financial profile.✓ Correct answer
- BThe representative should only recommend products that pay the highest commission.
- CRecommendations can be based on industry rumors.
- DAny product can be recommended as long as it's legal.
Explanation
Why A — Recommendations must be suitable for the client’s financial profile.
Suitability rules require recommendations that are appropriate for the client. High commission (B), rumors (C), or legality alone (D) do not satisfy this obligation.
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