n NISM Certifications
X NISM Series X
Medium

Which ethical dilemma might an investment adviser face?

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. A

    Recommending goal prioritization due to insufficient client funds

  2. Investing in a PMS scheme managed by the adviser’s spouse’s employer

    Correct answer

  3. C

    Resisting portfolio rebalancing during market optimism at client’s behest

  4. D

    All of the above

Why this is the answer

Such a conflict of interest creates an ethical dilemma, as the adviser’s personal interest could influence recommendations.

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