According to the impartial conduct standards, what is required of investment advice?

The requirement that investment advice must be in the best interest of the retirement investor is grounded in the principles of fiduciary duty. Under the impartial conduct standards, advisors are expected to prioritize the interests of their clients above their own or their firm’s financial interests. This standard ensures that recommendations are made based on what is most beneficial for the investor, rather than what might generate the highest profits for the advisor.

By requiring that advice be in the best interest of the retirement investor, the impartial conduct standards aim to protect individuals saving for retirement from potential conflicts of interest and ensure they receive trustworthy and appropriate guidance. This approach ultimately promotes better long-term outcomes for retirement investors, helping them make informed decisions that align with their financial goals and needs.

The other choices do not align with this fiduciary standard. Focusing solely on historical performance or tax advantages, for example, can overlook an individual's unique circumstances or risk tolerance requirements, which are crucial in making sound investment decisions. Opting for the most profitable route for the advisor does not serve the client’s best interests and violates the fundamental principles of impartial conduct.