Which option concerning client restrictions is allowed under safe harbor rules?

The correct answer pertains to the ability of an investment adviser to impose restrictions on specific securities as part of the client’s investment strategy while adhering to safe harbor rules. Safe harbor rules are designed to protect investment advisers, allowing them to implement certain practices without fear of violating regulations, as long as they operate transparently and in good faith.

Imposing restrictions on specific securities means that the adviser respects the client's preferences and investment philosophy, ensuring that the client's wishes are prioritized in the managing of their portfolio. By doing so, the adviser acts in accordance with the fiduciary duty to act in the best interest of the client, accommodating any concerns or preferences the client might have regarding certain investments.

This practice is essential for maintaining a strong advisor-client relationship and aligning the investment approach with the client's tolerance for risk, ethical considerations, or personal beliefs. Thus, this option aligns with the fundamental principles of compliance and the fiduciary duty of care, which is a core aspect of the role of an investment adviser.