A mutual fund sales representative receives a client’s purchase order for equity mutual funds and confirms that the order is appropriate based on the client’s recorded investment knowledge and risk tolerance. The client explains that she had inherited the funds from a family member. The client states her investment objective to be long term. The representative records this information and processes the order. What the representative doesn’t know is that the client has recently lost her job and is living on unemployment insurance. What step did the representative need to take in order to uphold her duty of care?
Submit