Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:
A) Will encourage clients to do more business.
B) Will help prevent potential litigation.
C) Will help banks sell sophisticated risk management solutions.
D) Is required by all regulators.

Question

Quizplus · Accepted Answer

Banks have a fiduciary responsibility to act in their clients' best interests and provide all necessary information to help prevent potential litigation. While providing sufficient information may encourage clients to do more business, it is primarily to fulfill their fiduciary duty and prevent legal issues. While regulators may require certain disclosures, this alone is not the main reason behind a bank's fiduciary responsibility. Providing information to sell risk management solutions is also not the primary reason for a bank's fiduciary duty.

Banks Have a Fiduciary Responsibility to Ensure That Clients Have