SIE practice questioneasyFiduciary Duty
Which standard obligates brokers to put their customer's interests ahead of their own when making recommendations?
- ARegulation Best Interest✓ Correct answer
- BCaveat emptor
- CArbitration
- DProspectus delivery
Explanation
Why A — Regulation Best Interest
Regulation Best Interest requires broker-dealers and associated persons to act in the retail customer's best interest when making recommendations and not place their own interests ahead of the customer's interests. Caveat emptor, arbitration, and prospectus delivery are not the broker recommendation standard.
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