Responsibilities to Clients in Investment Strategy

Very Easy Professional Standards Application Responsibilities To Clients

During a recent client meeting, Sarah, a financial analyst, discussed potential investment strategies with her client, Mr. Jones. During the conversation, Mr. Jones expressed interest in high-risk securities, even though he had previously indicated a more conservative investment style. Sarah, wanting to ensure that Mr. Jones was well-informed, decided to include information about high-risk bonds in the investment plan she presented.

What is the primary ethical responsibility Sarah has toward her client, Mr. Jones, in this situation?

To provide Mr. Jones with suitable investment options based on his indicated risk tolerance.

To encourage Mr. Jones to pursue high-risk investments regardless of his previous preferences.

To ensure that Mr. Jones is aware of all investment options, even if they differ from his stated preferences.

Hint

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