Question

Maria is a Dealing Representative for an exempt market dealer. She understands that it is important to exercise a high standard of conduct to attract and retain clients. Which of the following statements best provides an example of a practice which observes a high standard of conduct?

Answer 1

The example of a practice which observes a high standard of conduct for a Dealing Representative includes adhering to regulatory compliance, maintaining client confidentiality, and providing transparent communication about investments.

Step-by-step explanation:

The question relates to the ethical standards and conduct in the financial services industry, specifically for a Dealing Representative at an exempt market dealer. An example of a practice that observes a high standard of conduct would be adhering to regulatory compliance, maintaining client confidentiality, and providing transparent communication with clients about potential investments, including all associated risks and fees.

Maria should ensure that she is compliant with all applicable securities regulations, safeguard her clients’ confidential information vigilantly, and communicate effectively and honestly to earn trust and build a professional reputation. By doing so, she not only acts in her clients' best interests but also upholds the integrity of the financial industry.