CFA Practice Question

CFA Practice Question

PS Partners, a money management firm, uses different brokers for it trading. Most brokerage work is given to NP Ltd. The commissions charged by NP are higher than many other competitors, nor is its execution any better. NP pays for over half of PS's advertising expenses.
A. PS has violated Standard III (C) Suitability by not obtaining the best brokerage for their clients.
B. PS has violated Standard III (A) Loyalty, Prudence, and Care by not obtaining the best brokerage for their clients.
C. PS has violated Standard III (B) Fair Dealing by not obtaining the best brokerage for their clients.
Explanation: Has not acted in clients' best interests.

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