Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
A broker-dealer cannot make assumptions about customer-specific factors for which the customer declines to provide information in order to make a recommendation. This pertains to which of the following?
Churning
A
Money market funds
B
Preservation of Capital
C
Suitability
D
Explanations
A broker-dealer must exercise due diligence to obtain investor information; such as investments held at other firms. If the customer does not provide this information, it is difficult to ascertain suitability.