n NISM Certifications
X NISM Series X
Medium

Which actions constitute an ethical breach by an investment adviser towards their client?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Concealing conflicts of interest

  2. B

    Providing misleading recommendations

  3. C

    Favoring personal commissions

  4. All of the above

    Correct answer

Why this is the answer

All listed actions violate ethical standards, breach fiduciary duties, and undermine client trust.

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