Which term describes prescription of procedures that must be followed by financial services firms in their dealings with consumers?

• A. Structural.
• B. Systemic.
• C. Prudential.
• D. Conduct of Business.

Answer: (D)

This item tests the rules that govern how financial services firms interact with customers, ensuring proper procedures, disclosures, and fair treatment. The term that fits this focus is Conduct of Business, which covers how advisors and firms engage with clients, what must be disclosed, how recommendations are made, and how records and complaints are handled. The other terms point to different regulatory areas: structural relates to how a firm is organized, systemic to risks affecting the financial system as a whole, and prudential to the firm's financial soundness and risk management. Therefore, Conduct of Business is the correct description of the prescribed procedures in consumer dealings.