What is the primary responsibility of a financial advisor?
A financial advisor helps clients plan and manage their finances based on individual goals and risk tolerance.
What is fiduciary duty?
Fiduciary duty means acting in the best interest of the client above personal or company gain.
Why is ethical conduct important in financial advising?
Ethical conduct builds trust and protects clients from misconduct and conflicts of interest.
What should an advisor do when faced with a potential conflict of interest?
Advisors should disclose conflicts transparently and take steps to act in the client’s best interest.
How should advisors handle confidential client information?
Advisors must protect client data and only share it with authorized parties or with client consent.
Why is understanding a client’s financial goals critical?
It helps advisors recommend suitable products and build strategies tailored to the client’s objectives.
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What is the purpose of a suitability analysis?
Suitability analysis ensures that investment recommendations align with the client’s profile and financial situation.
What is full disclosure in financial advising?
Full disclosure involves transparently sharing fees, risks, and product information with clients.
What is the best way to build long-term client relationships?
Building trust through consistent, ethical behavior and effective communication fosters strong client relationships.