n NISM Certifications
X NISM Series X
Medium

What does the fiduciary nature of an investment adviser-client relationship imply?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Act in the best interest of the client

    Correct answer

  2. B

    Adviser bears final decision-making authority

  3. C

    Adviser acts as guardian of the client

  4. D

    Client decisions require adviser approval

Why this is the answer

Fiduciary duty mandates the adviser to prioritize the client’s interests above their own, ensuring trust and ethical conduct.

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