Question #16
Reading: Reading 41 Code of Ethics
PDF File: Reading 41 Code of Ethics.pdf
Page: 5
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
In accordance with Standard III (
Answer Choices:
A. Submit to clients, at least quarterly, itemized statements detailing all of the period’s transactions
B. Vote all proxies on behalf of clients in a responsible manner
C. Utilize client brokerage to the sole benefit of the client
Explanation
Because of the time and expense involved in voting a proxy, Members and Candidates are
not required to vote every proxy. A cost benefit analysis can be performed to determine if
it is necessary to vote a proxy. Standard III(A) requires that client brokerage be used to
benefit the client. Quarterly statements to clients are recommended.