n NISM Certifications
X NISM Series X
Medium

Which of the following scenarios may create a conflict of interest that could harm the investor?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Offering advice across various financial products

  2. B

    Representing multiple companies within the same product category

  3. C

    Receiving remuneration from product providers

  4. All of the above

    Correct answer

Why this is the answer

All these situations can lead to conflicts of interest if not disclosed and managed properly.

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