Which client action is an example of a triggering event?

Which client action is an example of a triggering event?

• A. Subscribing to a financial newsletter
• B. Changing the registrant responsible for an account
• C. Consistently reviewing market trends
• D. Participating in investment seminars

Answer: (B)

A triggering event is an action that indicates a change in a client's circumstances or investment needs, prompting a review or adjustment of their financial strategy or account management. Changing the registrant responsible for an account signals a significant shift in the client's relationship with the financial services or investment provider, which often necessitates updates to risk assessments, account management strategies, or investment objectives.

This action typically signifies that the client is reorganizing their financial management or is moving towards a different investment approach, making it a clear indicator that the client may have new goals or considerations that need to be addressed.

On the other hand, actions like subscribing to a financial newsletter, consistently reviewing market trends, or participating in investment seminars may reflect a client's interest in improving their financial knowledge or educating themselves but do not necessarily indicate a change that would require immediate action from a financial representative. These activities might suggest that the client is engaged or proactive but do not indicate a shift in their client-status or underlying investment strategy.