🔥 Daily ChallengeCIREScope of client relationshipsMedium
Under IDPC Rule 3301, what specific aspect of a security's cost must a Dealer Member assess as part of its product due diligence process?
A comparison of the product's costs against the industry average for similar asset classes
The impact that both initial and ongoing costs will have on the performance of the securityCorrect
The total dollar amount of commissions the firm expects to generate from the product
The potential tax deductibility of the costs for the client
Why
Rule 3301(1) requires firms to assess the impact of all costs (initial and ongoing) on the product's performance to ensure they understand the 'net' value proposition.
