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Canadian Securities Course (CSC) Practice Exam · Question

Which regulatory principle ensures that investment advisors recommend only those investments that are appropriate for a client's specific financial situation and investment objectives?

KYC and Suitability require advisors to gather comprehensive information about a client's financial situation, investment objectives, and risk tolerance to ensu

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Question: Which regulatory principle ensures that investment advisors recommend only those investments that are appropriate for a client's specific financial situation and investment objectives?

Answer options: ✅ Know Your Client (KYC) and Suitability

  • Anti-Money Laundering (AML)
  • Best Execution
  • Conflict of Interest Management

Correct answer: Know Your Client (KYC) and Suitability

Explanation: KYC and Suitability require advisors to gather comprehensive information about a client's financial situation, investment objectives, and risk tolerance to ensure recommended investments are suitable.

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