ACFE Exam CFE-Law Topic 1 Question 39 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 39
Topic #: 1

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

AA suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

BA suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives

CA suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

DA suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions

Show Suggested Answer

Suggested Answer: B

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

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Lavera

5 hours ago

I think the most accurate statement is B.

upvoted 0 times

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