CRPC | Fiduciary, Ethical, and Regulatory
Issues for Advisors
The provision that certain mutual fund policies cannot be changed without shareholder
approval is addressed in the: - ANS Investment Company Act of 1940.
A major responsibility of FINRA is - ANS Developing rules and regulations for its
members.
The recent regulatory and industry developments regarding fiduciary advice will most
likely: - ANS increase client expectations of advisers and put downward pressure on
fees.
Which act repealed a prohibition that had been in place preventing financial institutions
from offering a combination of commercial banking, investment banking, and insurance
services? - ANS Gramm-Leach-Bliley Act of 1999
The Employee Retirement Income Security Act (ERISA) was primarily passed because
of concern regarding the integrity and safety of: - ANS employer-sponsored retirement
plans.
An investment professional who reads investment journals is complying with the: - ANS
duty to keep current.
You sell your client a GNMA based on your explanation that they are "safe" because
they are guaranteed by the U.S. government. In which one of the following ethical duties
may you have failed your customer? - ANS Duty to disclose
Confidentiality is an important ethical obligation for all those who render investment
advice. The CFP Board, however, allows the unauthorized disclosure of confidential
client information in: - ANS connection with a civil dispute between a CFP certificant and
a client.
A potential client, Ross, is contacted by Amy, an investment professional with a fiduciary
responsibility to her clients. Ross is interested in trading complex options and is willing
to open an account if Amy is knowledgeable about options. Amy implies to Ross that
she is an expert in option trading but, in fact, knows only the basic elements of it.
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