Question #7
Reading: Reading 42.3 Standards of Professional Conduct Guidance for Standards III
PDF File: Reading 42.3 Standards of Professional Conduct Guidance for Standards III.pdf
Page: 3
Status: Unattempted
Correct Answer: B
Question
With regard to disseminating investment recommendations, the recommended procedures for compliance with the Standard concerning fair dealing least likely state that members and candidates should:
Answer Choices:
A. shorten the time frame between the decision to make an investment recommendation and its dissemination
B. maximize the number of people who know an investment recommendation is going to be disseminated
C. maintain a list of clients and their holdings, to facilitate notifying them of changes in investment recommendations
Explanation
Recommended procedures for compliance with Standard III(B) Fair Dealing include limiting
the number of people who know an investment recommendation is going to be
disseminated
(Module 42.5, LOS 42: III(B))