Chartered Investment Manager (CIM) Practice Exam · Question
In the context of investment management, what does the term 'fiduciary duty' primarily entail?
Fiduciary duty is a legal and ethical obligation that requires an individual or organization to act in the sole best interest of another party, typically a clie
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Question: In the context of investment management, what does the term 'fiduciary duty' primarily entail?
Answer options:
- The obligation to prioritize the firm's interests over the client's interests. ✅ The legal and ethical obligation to act in the best interests of the client.
- The duty to maximize profits for the investment management firm.
- The requirement to only recommend proprietary investment products.
Correct answer: The legal and ethical obligation to act in the best interests of the client.
Explanation: Fiduciary duty is a legal and ethical obligation that requires an individual or organization to act in the sole best interest of another party, typically a client.
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