General Securities Sales Supervisor (Series10) Practice Exam

What must a representative do if they wish to recommend products after an account review?

1. Consult other team members before proceeding

2. Provide evidence of potential risk

3. Gather explicit consent from the client

4. Seek validation from a supervisor

The correct answer is: Gather explicit consent from the client

In order for a representative to recommend products after conducting an account review, it is essential to gather explicit consent from the client. This step ensures that the client's unique circumstances, investment goals, and risk tolerance are aligned with the proposed recommendations. By securing explicit consent, the representative demonstrates adherence to regulatory requirements and a commitment to acting in the best interest of the client. It safeguards against any potential misunderstandings related to the nature of the recommendations and reinforces the trust and transparency in the advisor-client relationship. The other options, while they may hold some relevance in the process of due diligence or collaboration, do not meet the primary requirement of explicit client consent. Consulting team members or seeking validation from a supervisor can offer additional insights or oversight, and providing evidence of potential risk is important for informed decision-making. However, none of these actions substitute the necessity of having the client's explicit agreement before making any recommendations based on the account review. This process is crucial to ensure compliance with fiduciary standards and to maintain the integrity of the advisory process.