It is a regulatory requirement for financial advisers to explain any potential additional obligations for clients making a transaction in:

It is a regulatory requirement for financial advisers to explain any potential additional obligations for clients making a transaction in:
A . Bonds
B . Commodities
C . Derivatives
D . Equities

View Answer

Answer: C

Explanation:

Financial advisers are required to explain the additional obligations associated with derivatives, such as margin requirements, leverage risks, and potential for substantial losses. This is because derivatives are complex financial instruments with high risk.

[Reference: ICWIM, Topic: Regulation of Financial Instruments., FCA Handbook: Conduct of Business Sourcebook (COBS), Derivatives Obligations., , ]