n NISM Certifications
X NISM Series X
Medium

Which obligation is essential for an investment adviser to maintain a fiduciary relationship with a client?

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

Options

  1. Full disclosure of all relevant information

    Correct answer

  2. B

    Actively align the portfolio with market conditions

  3. C

    Select investments with the highest returns

  4. D

    Focus on positive aspects of the client’s situation

Why this is the answer

Fiduciary duty requires the adviser to act in the client’s best interest through full transparency and disclosure.

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