Question #29 - Reading 42.3 Standards of Professional Conduct Guidance for Standards III

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

Which of the following statements about a member's use of client brokerage commissions is NOT correct? Client brokerage commissions:

A. may be directed to pay for the investment manager's operating expenses

B. should be used by the member to ensure that fairness to the client is maintained

C. should be commensurate with the value of the brokerage and research services received

Brokerage commissions are the property of the client and may only be used for client benefit.

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