IFIC Mutual Funds Licensing Practice Exam · Question
A mutual fund representative must ensure that a recommended investment is suitable for a client based on which of the following updated criteria?
Suitability requires a comprehensive assessment of the client's financial situation, investment knowledge, risk tolerance, and investment objectives. Recommendi
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: A mutual fund representative must ensure that a recommended investment is suitable for a client based on which of the following updated criteria?
Answer options:
- The client's current age only.
- The representative's commission structure. ✅ The client's complete financial situation, investment knowledge, risk tolerance, and investment objectives.
- The trend of the overall market.
Correct answer: The client's complete financial situation, investment knowledge, risk tolerance, and investment objectives.
Explanation: Suitability requires a comprehensive assessment of the client's financial situation, investment knowledge, risk tolerance, and investment objectives. Recommending based on only one factor or the representative's interests is a breach of suitability rules.
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.