Fiduciary duty in recommending distribution and rollover

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Review the Code of Ethics and Standards of Professional Conduct Consider the following case study:

The Fiduciary Duty Applies to a Rollover Recommendation Sarah, a CFP® professional, is engaged by Betty, who is retiring soon, to provide Financial Advice. Betty has most of her retirement funds invested in her employer's 401(k) plan. Sarah does not obtain any information about the 401(k) plan because she assumes that there are more investment options available in an individual retirement account ("IRA") than in Betty's 401(k) plan. Based on this, Sarah believes Betty's portfolio would be better off in an IRA. Sarah properly discloses her Material Conflicts of Interest to Betty. Sarah then recommends that Betty take a distribution from her 401(k) plan and roll the assets into an IRA, which Sarah would manage. Sarah intends to analyze and recommend an investment strategy for the IRA after the funds have been distributed to the IRA. Now, answer the following questions in detail providing critical reasoning:

Did Sarah satisfy her fiduciary duty? Consider the two response options:

Sarah satisfied her fiduciary duty in recommending the distribution and rollover.

Sarah did not satisfy her fiduciary duty in recommending the distribution and rollover.

Reference no: EM133239594

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