What must an adviser do when providing a listing of all recommendations?

What must an adviser do when providing a listing of all recommendations?

• A. Only include securities with historical gains
• B. State each recommendation's current market price
• C. Furnish a list of all recommendations made in the last year
• D. Include personal opinions on each security

Answer: (C)

When an adviser provides a listing of all recommendations, it is essential to furnish a list of all recommendations made in the last year. This practice ensures transparency and lays a foundation for trust between the adviser and clients or prospective clients. By presenting a comprehensive record, the adviser allows clients to assess the adviser’s past performance and the breadth of investment options discussed, fostering informed decision-making for current or future investments. This approach is in line with regulatory requirements that aim to ensure that clients have access to relevant information regarding the adviser's history of recommendations. It promotes accountability and aids clients in understanding the patterns or trends in the adviser's advice, which can be important in evaluating their investment strategy. Providing personal opinions on each security, listing only securities with historical gains, or stating each recommendation's current market price does not meet the requirement of full disclosure and could lead to biases or misunderstandings about the adviser's past performance or the nature of recommendations.

When an adviser provides a listing of all recommendations, it is essential to furnish a list of all recommendations made in the last year. This practice ensures transparency and lays a foundation for trust between the adviser and clients or prospective clients. By presenting a comprehensive record, the adviser allows clients to assess the adviser’s past performance and the breadth of investment options discussed, fostering informed decision-making for current or future investments.

This approach is in line with regulatory requirements that aim to ensure that clients have access to relevant information regarding the adviser's history of recommendations. It promotes accountability and aids clients in understanding the patterns or trends in the adviser's advice, which can be important in evaluating their investment strategy.

Providing personal opinions on each security, listing only securities with historical gains, or stating each recommendation's current market price does not meet the requirement of full disclosure and could lead to biases or misunderstandings about the adviser's past performance or the nature of recommendations.