A financial advisor who is also a broker-dealer is held to a
A)fiduciary standard.
B)fee-only standard.
C)commision-only standard.
D)suitability standard.

Question

Quizplus · Accepted Answer

A financial advisor who is also a broker-dealer is typically held to a suitability standard, which requires them to make recommendations that are suitable for their clients based on their financial goals, risk tolerance, and other factors. While they may also have fiduciary responsibilities in certain situations, such as when providing investment advice, the suitability standard is the primary one that applies to broker-dealers. Choice A is incorrect because the fiduciary standard applies primarily to registered investment advisors, who are not necessarily broker-dealers. Choice B is incorrect because fee-only advisors do not receive commissions from the sale of financial products, which is a key characteristic of broker-dealers. Choice C is incorrect because commision-only is not a recognized standard for financial advisors or broker-dealers.

A Financial Advisor Who Is Also a Broker-Dealer Is Held