Question #28
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: 11
Status: Unattempted
Correct Answer: A
Question
Concerning Standard III(B), Fair Dealing, which of the following actions is NOT a valid procedure for compliance with the Standard?
Answer Choices:
A. Communicate investment recommendations simultaneously within the firm and to customers, where possible
B. Limit the number of people that are involved and are privy to the fact that an investment recommendation is going to be disseminated
C. Communicate investment recommendations to all customers including those accounts for which the securities are not eligible for purchase
Explanation
To ensure compliance with the Standard, members should seek to communicate
investment recommendations to all clients who have indicated an interest and also those
for whom the securities are suitable. There is no need to communicate recommendations
to clients for whom the securities are deemed unsuitable.
(Module 42.5, LOS 42: III(B))