Ethics - Disclosure

Two ethics questions: these relate to a client directing the manager to use a broker who does not provide best execution > Vol 1 Page > 50 - Standard III A > “manager should disclose to the client that they may > not be getting best execution” — does manager also require acknowledgment from client, and if so is this written or verbal? > Vol 1 Page 230 - Asset > Manager Code C4 > “managers should alert the client that by limiting the > manager’s ability to select the broker, the client may not be receiving > best execution, and the manger should seek written acknowledgment of such > from the client.” — is the written acknowledgment a Requirement or a Recommendation?

  1. Good question. Not sure. I would go for written because then it would come under record retention. 2) I will say requirement. You want to make sure every party knows the terms of the deal. Would be good to confirm the above anyway.

For Q1) According to textbook… If a member or candidate is uncertain about the appropriate course of action with respect to a client, the member or candidate should ask what he or If in doubt, a member or candidate should disclose the questionable matter “in writing” and “obtain client approval.”