SIE practice questioneasyFiduciary Duty
Which standard obligates brokers to put their customer's interests ahead of their own when making recommendations?
- AFiduciary duty✓ Correct answer
- BCaveat emptor
- CArbitration
- DProspectus delivery
Explanation
Why A — Fiduciary duty
Fiduciary duty requires acting in the customer’s best interest. 'Caveat emptor' means buyer beware; arbitration resolves disputes; prospectus delivery is regulatory, not a standard of conduct.
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