What is the primary focus of the Duty of Care standard?

• A. Providing promotional advice to clients
• B. Knowing your client and exercising due diligence
• C. Ensuring company profits are maximized
• D. Implementing aggressive marketing strategies

Answer: (B)

The primary focus of the Duty of Care standard is on knowing your client and exercising due diligence. This principle emphasizes the importance of understanding a client's needs, preferences, and circumstances to provide appropriate and competent service. By practicing due diligence, representatives ensure they are acting in the best interests of their clients, safeguarding their interests, and maintaining a trust-based relationship.

This standard requires individuals to stay informed, actively seek relevant information about their clients, and remain aware of any changes that could impact the advice or services provided. This level of care is crucial in fostering a responsible and ethically grounded professional environment, ultimately enhancing client satisfaction and promoting long-term professional relationships.

In contrast, providing promotional advice, maximizing profits, or implementing aggressive marketing strategies may not prioritize the client's best interests, thus diverting from the core responsibility entailed by the Duty of Care. The focus must remain on the relationship with the client rather than on external business metrics or aggressive tactics.