n NISM Certifications
X NISM Series X
Medium

Identify the reason which could lead to the Investment adviser-Client relationship falling short of high ethical standards.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The inability of the adviser to understand the client’s needs

  2. B

    The adviser’s inability to rebalance asset allocation as per market movements

  3. C

    Regulatory constraints limiting service levels

  4. All of the above

    Correct answer

Why this is the answer

All these factors can impact the quality and ethics of the advisory relationship.

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