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Up4
Hi everyone!
I have seen cases in which giving opinions as facts qualified as misrepresentation and in other caeses as failure in communication with clients.
Which one is it? Does anyone has a practical rule regarding this subject?
I refer to reading 3 Question 15 specifically.
Thank you!
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Up5
Hmm – reading the statement I definitely thought ‘Misrepresentation’.
I think this may be one of those things that you get a feel for as you complete more questions, but my take on it is this:
“you will earn 10% rate of return” is outright untrue. It’s not even an opinion, it’s just not true, so misrepresentation is the violation here.Communicating with clients can also include cases like failing to notify when certain material issues arise (usually in the hope that it goes away). The focus will usually be on the fact that communication was inadequate, late, or inaccurate.
Hope that helps!
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Up3
Thanks @Zee!
So the text goes something like:
“If you invest in the mutual fund X, you will earn a 10% rate of return (…) based on historical performance of the market.”
In the answer sheet it states that it is misrepresentation because it states opinion as fact, but this “opinion as fact” approach has been more linket in the topic of communicating with clients.
What you think about it?
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Up2
It really depends on the context and intent in the communication. Happy to help if you can share the specific text of the question.
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