Ensuring Fair Treatment of Brokerage Firm Clients | CFA® Level 1 Exam

Actions That Ensure Fair Treatment of Brokerage Firm Clients

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Question

Which one of the following actions will not help to ensure the fair treatment of brokerage firm clients when a new investment recommendation is made?

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A. B. C. D.

C

This question deals with Standard IV (B.3), Fair Dealing. All the procedures listed will help members treat clients fairly, except distributing recommendations to institutional clients prior to individual accounts. This practice discriminates among clients based on size and class of assets and is a violation of Standard IV (B.3).