FINRA Investment Banking Representative Practice Exam 2025 – Complete Preparation Guide

The correct answer highlights that specific roles within the financial industry, such as transfer agents and trustees, are considered fiduciaries under FINRA Rule 2060. A fiduciary is someone who has a legal and ethical obligation to act in the best interest of another party. In this context, fiduciaries must prioritize their clients’ interests above their own when providing investment advice or managing assets.

Transfer agents and trustees play significant roles in handling and safeguarding client assets, thereby placing them in positions where the fiduciary duty is paramount. These professionals must ensure the accurate processing of transactions and the proper oversight of trust assets, which underscores their obligation to act in clients' best interests.

The other options, such as institutional investors, all registered representatives, and financial analysts, do not capture the specific fiduciary responsibilities outlined in the rule. Institutional investors, while influential in the markets, do not inherently have the fiduciary status unless they meet the criteria set forth for those specific functions like trustees or transfer agents. Registered representatives and financial analysts may offer advice but do not automatically hold fiduciary status solely by virtue of their titles or roles unless they engage in fiduciary conduct or are otherwise designated as fiduciaries.