medium · Certified Financial Planner Retirement
A planner for the Tolliver household is considering recommending a proprietary mutual fund that pays a higher commission than a lower-cost, no-load alternative with identical securities.
According to Rank 1 of the CFP Mindset hierarchy, what must the planner do?
- Recommend the no-load fund because the Duty of Loyalty requires placing the client's interest above the planner's.
- Offer both options and allow the client to decide which one they prefer.
- Recommend the proprietary fund as long as the compensation is fully disclosed in writing.
- Calculate the projected after-tax returns of both to determine if the proprietary fund's performance justifies the cost.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner Retirement practice
- Why are zero-coupon bonds considered the perfect instrument for precise liability immuniza
- Under Section 2035, what is brought back into the donor's gross estate?
- According to the decision hierarchy, which rank resolves the conflict?
- What is the total federal tax rate applied to their capital gains, including the Net Inves
- How many total life insurance policies are required to execute this agreement?
- What is the maximum combined contribution they can make without consuming any of their $15
- The Solis household invested in a small business that failed… — How much of this loss can
- Which statement is true?