- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 71. Guidance for Standards I-VII
- Subject 8. Standard III (B) Fair Dealing
CFA Practice Question
Which one of the following requirements will not help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made?
A. Limit the number of people in the firm who are aware in advance that a recommendation is to be disseminated.
B. Establish procedures to ensure that institutional clients are informed of the new recommendation prior to smaller individual accounts.
C. Monitor the trading activities of firm personnel.
Explanation: There are other requirements as well (e.g., minimize elapsed time between the decision and the dissemination of a recommendation).
User Contributed Comments 2
User | Comment |
---|---|
Goran80 | Insitutes- first Individuals - last |
zzhumanov | to Goran: this will NOT help to ensure the fair dealing. You are wrong, buddy. |