Ethics - Pro Rata

CFA Level III
#1

Which of the following statements is FALSE? It is permissible under the Standards to allocate trades:

A) on a pro rata basis over all suitable accounts based upon account value.

B) on a pro rata basis over all suitable accounts on the basis of an advance indication of interest and indicated order size.

C) on a pro rata basis over all suitable accounts.

#2

C

#3

B

#4

A

#5

A

#6

what’s the answer?

#7

They went with A , we should NOT base on account value.

#8

If C is a legit answer what does pro rata distribution mean in that context. Number of shares available/ number of accounts?

#9

where did you find this question?