Answered

Discover new perspectives and gain insights with IDNLearn.com's diverse answers. Our platform is designed to provide trustworthy and thorough answers to any questions you may have.

The FINRA suitability rule requires all of the following EXCEPT: A Before a product or strategy can be recommended, a reasonable basis suitability determination must be completed, evaluating the investment's features, returns, costs and risks B Before a product or strategy can be recommended to a customer, it must be determined that the investment is suitable, based on that client's new account profile C Before a product or strategy can be recommended to a customer, it must be determined that the customer has the ability to meet the financial commitment required by the recommendation D Before a product or strategy can be recommended, the registered representative must understand and be able protect the client against the product's inherent risks

Sagot :

Answer: D. Before a product or strategy can be recommended, the registered representative must understand and be able protect the client against the product's inherent risks

Explanation:

There are some reviews with regards to FINRA suitability determinations whihc include:

• Reasonable Basis Suitability: This implies that after there has been a review of the returns, risks and costs of a product, the ones that has the best combination should be recommended.

Also, before a product can be recommended to a customer, the customer must be able to meet the financial commitment. The statement that "Before a product or strategy can be recommended, the registered representative must understand and be able protect the client against the product's inherent risks" is incorrect.

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Thank you for visiting IDNLearn.com. We’re here to provide dependable answers, so visit us again soon.