CFA Practice Question

There are 291 practice questions for this study session.

CFA Practice Question

Which of the following is most likely correct?

A. Trade allocation procedures being disclosed to all clients prior to their retaining the services of a firm is sufficient for compliance with Standard III (B) Fair Dealing.
B. When a block order is partially executed, allocating partially executed orders among the participating client accounts pro rata on the basis of order size is recommended for compliance with Standard III (B) Fair Dealing.
C. Trade allocation procedures being disclosed to all clients prior to their retaining the services of a firm is sufficient for compliance with Standard V (B) Communication With Clients and Prospective Clients.
Correct Answer: B

Disclosure of inequitable allocation procedures is not sufficient for compliance. Also trade allocation procedures are not related to Standard V (B) Communication With Clients and Prospective Clients.

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