Chapter 26 Working With the Retail Client KT

Question 1

The responsibility to conduct due diligence before providing advice or recommending products.

Answer 1

duty of care

Question 2

Making decisions based on the principles of trust, integrity, justice, fairness, honesty, responsibility, and reliability.

Answer 2

ethical decision-making

Question 3

A model used in financial planning that tries to link age with investing that proposes that an individual’s asset mix will change as they grow older.

Answer 3

life cycle hypothesis

Question 4

The rules or standards governing the behaviour of a particular group or profession, a set of moral principles or values, or the study of the general nature of morals and the moral choices made by individuals.

Answer 4

ethics

Question 5

What overriding criteria requires that all information about a client and a security to be analyzed to determine if an investment is appropriate?

Answer 5

suitability

Question 6

The cardinal rule regarding obtaining information about a client for ensuring suitability of investment recommendations.

Answer 6

Know Your Client