Question

Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following is NOT considered when determining excessive trading in a client's account?A) Investment objectives of the client.B) Client's financial status.C) Length of association with the agent.D) Character of the account.

Answer 1

Answer:

Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following is NOT considered when determining excessive trading in a client's account:

C) Length of association with the agent.

Explanation:

• NASAA stands for The North American Securities Administrators Association that ensure the safety of the investor.

• The option a, b and d are not correct as the Under the NASAA's statement of policy of dishonest or unethical business practices of broker/dealers and agents, investment objectives of the client, financial status of the client as well as the character of the account are considered.
• The option c is correct as length of association with the agent is not the concern of the NASAA so it is taken into the consideration.