A CFP professional is recommending a life insurance policy to a client. The professional receives a higher commission for selling policies from Company A compared to Company B, even though Company B's policy might be more suitable for the client's specific needs and budget. What ethical obligation is being challenged in this situation?

Question: A CFP professional is recommending a life insurance policy to a client. The professional receives a higher commission for selling policies from Company A compared to Company B, even though Company B's policy might be more suitable for the client's specific needs and budget. What ethical obligation is being challenged in this situation?

Answer options: ✅ Fiduciary Duty – acting in the client's best interest.

• Maintaining professional competence.
• Adherence to anti-money laundering regulations.
• Ensuring data security and privacy.

Correct answer: Fiduciary Duty – acting in the client's best interest.

Explanation: Recommending a product based on higher commission rather than client suitability directly violates the professional's fiduciary duty to always prioritize the client's best interests above personal or firm compensation.