5.4.1 Broker-Dealer vs. Investment Adviser Suitability
Investment advisers have a fiduciary duty to their clients, which requires them to put their clients’ interests before their own at all times. Under the suitability rule described above and SEC Regulation Best Interest, broker-dealers are required to make recommendations that are in the best interests of their clients. This best-interest requirement prohibits broker-dealers from putting their own interests ahead of the interests of their clients.
Answer true or false
_ Diversification of investments within a portfolio is a key component of the prudent investor standard because this strategy tends to reduce poten