Banks have a fiduciary responsibility to ensure that clients have all necessary information to understand the transaction because this:
A) Will encourage clients to do more business.
B) Will help prevent potential litigation.
C) Will help banks sell sophisticated risk management
D) Is required by all regulators.

Question

Quizplus · Accepted Answer

Banks have a fiduciary responsibility to act in the best interest of their clients and providing all necessary information helps prevent potential litigation. It is not primarily done to encourage clients to do more business or sell sophisticated risk management, although these might be secondary benefits. While regulators may require certain disclosures, this is not the primary motivation for the fiduciary responsibility.

Banks Have a Fiduciary Responsibility to Ensure That Clients Have