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Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from...

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

A.

A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

B.

A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives

C.

A suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

D.

A suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions

ACFE CFE-Law Summary

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  • Product: CFE-Law
  • Update on: Jan 2, 2026
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