Dora is an investment advisor who is also part owner of a new business.Without disclosing her ownership,Dora has recommended that clients purchase shares in her new business.Which of the following wrongs has Dora likely committed?

Question

Quizplus · Accepted Answer

Dora has likely committed a breach of fiduciary duty by not disclosing her ownership in the business she is recommending to her clients. As an investment advisor, she has a fiduciary duty to act in her clients' best interests, which includes disclosing any potential conflicts of interest.

Dora Is an Investment Advisor Who Is Also Part Owner