AAFM Exam GLO_CWM_LVL_1 Topic 8 Question 79 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 79
Topic #: 8

[All GLO_CWM_LVL_1 Questions]

Which of the following is true with regard to wealth planner's liability?

AA disclaimer removes all liability

BA principal advisor is responsible for actions of representative

CAdvice is distinguishable from a recommendation

DAn advisor may not be held liable for failure to predict economic changes

Show Suggested Answer

Suggested Answer: A

by William at May 12, 2024, 07:29 AM

Limited Time Offer

25%

Off

Get Premium GLO_CWM_LVL_1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Cheryll

8 days ago

Predicting economic changes? That's like trying to herd cats - good luck with that, advisor!

upvoted 0 times

King

1 days ago

I know, it's definitely not an easy task!

upvoted 0 times

...

Teresita

11 days ago

A disclaimer that removes all liability? Might as well have a 'Get Out of Jail Free' card in your back pocket!

upvoted 0 times

...

Jeff

17 days ago

D? Really? So an advisor can just shrug and say 'I didn't see that coming' whenever the economy tanks? Not buying it.

upvoted 0 times

Marylyn

7 days ago

A) A disclaimer removes all liability

upvoted 0 times

...

Odelia

20 days ago

Hmm, I'm going with C. Advice and recommendation are two different things, and that distinction is key here.

upvoted 0 times

...

Stephanie

24 days ago

A is just wishful thinking - no way a simple disclaimer can remove all liability. That's like saying 'I'm not responsible for anything I do.'

upvoted 0 times

...

Georgiann

25 days ago

Hmm, that's a good point. I see where you're coming from.

upvoted 0 times

...

Jannette

26 days ago

I'd say B is the correct answer. The principal advisor is responsible for the actions of their representatives, no ifs and buts about it.

upvoted 0 times

Sylvia

15 days ago

I agree, the principal advisor is definitely responsible for their representatives.

upvoted 0 times

...

Joseph

29 days ago

I disagree, I believe C is true. Advice is distinguishable from a recommendation.

upvoted 0 times

...

Georgiann

1 months ago

I think B is true, the principal advisor is responsible for actions of representative.

upvoted 0 times

...