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ACFE Exam CFE-Law Topic 1 Question 39 Discussion

Actual exam question for ACFE's CFE-Law exam
Question #: 39
Topic #: 1
[All CFE-Law Questions]

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

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Suggested Answer: B

by Noah at Jun 23, 2024, 07:48 PM

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Artie
1 months ago
Option E: When a broker recommends investing in a pyramid scheme. Now that's what I call an unsuitable recommendation!
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Mireya
1 months ago
Option C is just too specific. Suitability is about the bigger picture, not just getting approval for every trade. B is the most comprehensive answer here.
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Jolanda
1 months ago
Haha, Option A? Really? Like a client is just going to request an unsuitable trade. That's not how this works. Option B is the way to go, folks.
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Theron
1 months ago
I'm going with Option D. When a broker makes trades just to rack up commissions, that's a clear violation of the suitability rules. Gotta keep the brokers honest, you know?
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Margret
1 days ago
Definitely, investors should always be cautious and do their own research before making investment decisions.
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Detra
5 days ago
It's important for investors to be aware of these rules to protect their interests.
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Skye
6 days ago
That's right, recommending investments just to generate commissions is not ethical.
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Marti
21 days ago
I agree, brokers should always act in the best interest of their clients.
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Shawn
2 months ago
I'm not sure, but I think D could also be a suitability violation because it involves generating excessive commissions.
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Theresia
2 months ago
Option B is the most accurate. A suitability violation occurs when a broker recommends an investment or strategy that doesn't align with the client's objectives. It's all about putting the client's needs first.
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Raina
1 months ago
User 2: Definitely, putting the client's needs first is crucial in the financial industry.
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Fannie
1 months ago
User 1: I agree, option B is the most accurate. It's important to consider the client's objectives when making recommendations.
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Blair
2 months ago
I agree with Lavera, recommending an investment inconsistent with the client's objectives is definitely a suitability violation.
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Lavera
3 months ago
I think the most accurate statement is B.
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