Final answer:
A financial planner must adhere to ethical standards and client preferences along with legal regulations, while also considering various factors such as risk and market freedom to provide sound financial advice.
Step-by-step explanation:
When providing advice, a financial planner must adhere to both ethical standards and the client's preferences, in addition to following legal regulations. This ensures that the advice given is not only legally compliant but also aligns with the client's values and financial goals. Moreover, a financial planner should consider various factors such as the risk involved in different types of financial assets, investor considerations in the financial market, and ways to achieve future financial goals while making spending and saving decisions.
Organizing economic institutions involves a balance over the appropriate combination of market freedom and government rules. This balancing act is essential to ensure that financial advice remains objective and benefits the client, rather than being swayed by personal opinions, biases, or fleeting market trends. Thus, the correct option is Option 2: Ethical standards and client's preferences.