Gary chooses not to recommend that his client sell a current mutual fund to purchase a similar new mutual fund despite pressure to meet a sales target for the new fund. What responsibility applies to Gary’s action?
Comprehensive and Detailed Explanation From Exact Extract:
Gary’s decision to prioritize the client’s interests over meeting a sales target reflects his ethical responsibility. The feedback from the document states:
"Gary is fulfilling his ethical responsibility by placing his client’s needs ahead of his own need to reach a sales target. As the new fund is similar to the current investment, it would be an appropriate one for the client, so he would not be compromising his legal responsibility to ensure that all client orders are suitable."
[Reference:Chapter 1 – The Role of the Mutual Fund Sales RepresentativeLearning Domain:An Introduction to the Mutual Funds Marketplace, ]
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