Responsibilities in Client Recommendations

Very Easy Professional Standards Application Responsibilities To Clients

John is a financial analyst at XYZ Capital, a firm known for its commitment to ethical investing. One day, John discovers an investment opportunity that he believes will significantly benefit his clients. However, as he prepares to recommend this investment to his clients, he finds out that the opportunity has some risks that he had initially overlooked.

John is faced with a dilemma: should he proceed to recommend the investment based on its potential returns, or should he disclose the risks involved, ensuring that his clients have all the necessary information to make an informed decision?

John should recommend the investment without mentioning the risks to maximize his clients' returns.

John should fully disclose the risks associated with the investment before making any recommendations.

John should consult with his supervisor before disclosing the risks to his clients.

Hint

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