What is one important item that must be included on an order ticket for an Investment Adviser?

What is one important item that must be included on an order ticket for an Investment Adviser?

• A. The client's name
• B. The time of the transaction
• C. The IA who recommended the transaction
• D. The transaction amount

Answer: (C)

An order ticket in the context of an Investment Adviser (IA) must include the identity of the IA who recommended the transaction because this information is crucial for accountability and regulatory compliance. The requirement serves to ensure that all recommendations can be traced back to a specific adviser, facilitating oversight and ensuring that proper procedures are followed. This promotes transparency in the advisory process and helps in auditing and monitoring the conduct of investment advisers. While other items, such as the client's name, the time of the transaction, and the transaction amount, are important aspects of the order ticket, they may not be as crucial for accountability with respect to the adviser's role in the transaction. The identity of the recommending adviser is particularly significant for regulatory purposes, as it directly relates to the duty of care that the adviser owes to their client and the need to act in the client’s best interests.

An order ticket in the context of an Investment Adviser (IA) must include the identity of the IA who recommended the transaction because this information is crucial for accountability and regulatory compliance. The requirement serves to ensure that all recommendations can be traced back to a specific adviser, facilitating oversight and ensuring that proper procedures are followed. This promotes transparency in the advisory process and helps in auditing and monitoring the conduct of investment advisers.

While other items, such as the client's name, the time of the transaction, and the transaction amount, are important aspects of the order ticket, they may not be as crucial for accountability with respect to the adviser's role in the transaction. The identity of the recommending adviser is particularly significant for regulatory purposes, as it directly relates to the duty of care that the adviser owes to their client and the need to act in the client’s best interests.