What is the purpose of a code of ethics in investment counseling?
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Wrong!
The code of ethics guides professional conduct and integrity in investment services.
What is fiduciary duty?
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Fiduciary duty requires acting in the best interest of the client.
Which principle emphasizes transparency with clients?
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Disclosure ensures clients are fully informed about investments and risks.
What should an investment counselor avoid to maintain ethics?
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Avoiding conflicts of interest ensures unbiased advice.
What is the consequence of unethical behavior in investment counseling?
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Unethical behavior can lead to loss of client trust and legal penalties.
Which organization sets professional standards for investment counselors?
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The CFA Institute provides codes and standards for investment professionals.
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What is the principle of confidentiality?
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Confidentiality requires protecting client information from unauthorized disclosure.
How should investment counselors handle conflicts of interest?
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Counselors must disclose and manage conflicts to protect client interests.
Why is continuing education important for professionals?
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It ensures counselors stay updated on laws, standards, and best practices.