What is a key requirement for entering client orders?

What is a key requirement for entering client orders?

• A. Obtaining client approval only when necessary
• B. Entering them solely at the discretion of the advisor
• C. Entering orders with client instructions and approval
• D. Prioritizing quick execution over client preferences

Answer: (C)

A key requirement for entering client orders is entering them with client instructions and approval. This ensures that the orders accurately reflect the client's intentions and investment objectives. Client approval is essential not only for compliance with regulatory standards but also for building trust and maintaining a strong advisor-client relationship.

By obtaining explicit client instructions before executing any trades, the representative ensures that the client's specific needs and preferences are met. This practice protects both the client and the advisor, as it provides a clear record of the client's decisions and reduces the risk of misunderstandings or disputes about the order execution.

The options that focus on unilateral actions, such as entering orders solely at the discretion of the advisor or prioritizing speed over client preferences, undermine the fundamental principle of client-centric service. Similarly, obtaining approval only when necessary ignores the importance of consistent communication and clarity in the relationship with clients. Overall, prioritizing client instructions and approval reflects best practices and regulatory requirements in the financial services industry.