A money manager makes claims about her firm's capability after meeting a client. This is a:

Prepare for the Kaplan Ethics Test. Practice with comprehensive quizzes, flashcards, and multiple-choice questions. Each question includes insights and explanations. Gear up and succeed on your exam!

The correct response indicates that claims made by a money manager about her firm's capabilities are permissible when they are founded on factual information. This means that if the manager’s assertions are rooted in verifiable and accurate data regarding the firm’s performance or credentials, then communicating this information to a client aligns with ethical standards.

It's essential for financial professionals to base their statements on truth and evidence. Claims that are factual contribute to the integrity of the financial industry, helping clients make informed decisions based on accurate representations of a firm’s abilities. Therefore, when a manager presents claims that are substantiated by reliable information, she is acting ethically, demonstrating transparency and accountability.

This principle reinforces the importance of honesty and integrity in client relationships and ensures that all communications uphold the ethical standards of financial practice.

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