What must a registered person do if a client’s investment profile suggests a different strategy?

What must a registered person do if a client’s investment profile suggests a different strategy?

• A. Ignore the profile if the client insists
• B. Implement the strategy without consulting the profile
• C. Reassess the strategy based on the profile
• D. Only suggest changes at the next meeting

Answer: (C)

The correct approach is to reassess the strategy based on the client's investment profile. This means that the registered person should carefully evaluate the current investment strategy in light of what the profile indicates about the client's goals, risk tolerance, time horizon, and overall financial situation. By doing so, the registered person can ensure that the investment strategy aligns with the client's best interests. Implementing a strategy that contradicts the profile or ignoring the profile entirely could lead to unsuitable investment decisions for the client. Additionally, recommending changes only at the next meeting does not allow for timely adjustments that could benefit the client's portfolio based on their needs. It is crucial for registered persons to remain proactive and responsive to any discrepancies between a client's expressed preferences and their investment profile.

The correct approach is to reassess the strategy based on the client's investment profile. This means that the registered person should carefully evaluate the current investment strategy in light of what the profile indicates about the client's goals, risk tolerance, time horizon, and overall financial situation. By doing so, the registered person can ensure that the investment strategy aligns with the client's best interests.

Implementing a strategy that contradicts the profile or ignoring the profile entirely could lead to unsuitable investment decisions for the client. Additionally, recommending changes only at the next meeting does not allow for timely adjustments that could benefit the client's portfolio based on their needs. It is crucial for registered persons to remain proactive and responsive to any discrepancies between a client's expressed preferences and their investment profile.