Question

An investment adviser representative who prepares financial plans for customers is also a registered life insurance agent in that State. If the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, all of the following should be disclosed to the customer except the fact that the:__________.

A. Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm.
B. Agent will earn a commission on the life insurance purchased by the customer.
C. Sale of the mutual fund mayor is alt in a taxable event to the customer.
D. Recommendation to buy life insurance does not make the investment advice any less objective.

Answer 1

D. Recommendation to buy life insurance does not make the investment advice any less objective.

Step-by-step explanation:

investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer

In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer

✓. Sale of the mutual fund mayor is alt in a taxable event to the customer

✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm

✓Agent will earn a commission on the life insurance purchased by the customer