Ttcyftxycf (66)-6

.pdf
School
University of Florida **We aren't endorsed by this school
Course
FINANCE 6600
Subject
Finance
Date
Nov 20, 2023
Pages
1
Uploaded by ChiefOpossum3761 on coursehero.com
A) Mr. Stuart should resign, as not disclosing referral fees is a violation of Standard VI(C) B) Mr. Stuart should discuss with Priority Investments options to disclose or restrict fees and disclose this to any clients C) Mr. Stuart should collect referral fees without disclosure, since there is no existing policy in place at Priority Investments - ✔✔ B) Mr. Stuart should discuss with Priority Investments options to disclose or restrict fees and disclose this to any clients CFA® members and candidates should always attempt to encourage their employers to come into line with standards. Mr. Stuart is ultimately required to disclose fees. Standard VI(C) requires disclosure be made to clients and potential clients when referral fees exist to determine total cost of the investment. Helena Bailey, CFA, is an analyst covering the utility sector at JCS Investment Advisers (JCS). Recently, speculation about interest rate rises have made the sector more volatile, and Bailey mentions to her manager, Ted Browne, CFA, that she'd like to look into Regional Southern Utility (RSU), anticipating a change from the current "buy" recommendation. Browne immediately emails a memo to the firm's top- performing advisers that RSU will soon be downgraded to a "sell." How is Standard III(D) on fair dealing most likely violated? A) Because Browne alerts only some of the firm's advisers to the anticipated change B) Because Browne disseminates the anticipated change to firm advisers before it is confirmed C) Because Bailey implies that her recommendation will change before she does a thorough analysis - ✔✔ A) Because Browne alerts only some of the firm's advisers to the anticipated change Browne violates the standard on fair dealing by distributing potentially relevant information to only some of the firm's advisers, and therefore making it available to only some of the firm's clients. Although none of the advisers should be discussing a change in recommendation with clients until it is released, favoring some advisers and their clients in distributing information is a violation of the standard.
Page1of 1
Uploaded by ChiefOpossum3761 on coursehero.com