n NISM Certifications
X NISM Series X
Medium

Which regulatory measure helps protect investors from mis-selling by advisors?

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

    Cap on commissions

  2. Separation of advisory and distribution services

    Correct answer

  3. C

    Allowing advisors to sell all products

  4. D

    Restricting advisors to one company’s products

Why this is the answer

Segregating advice from distribution reduces conflicts of interest and mis-selling.

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