Ethics Q

From qbank An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group: A) will definitely include more basic facts. B) will not be allowed because it violates the Standard V(A), Diligence and Reasonable Basis. C) will not be allowed because it violates the Standard III(B), Fair Dealing. D) may generally exclude more basic facts. Your answer: C was incorrect. The correct answer was D) may generally exclude more basic facts. Reason: According to Standard V(B), an analyst can use reasonable judgment regarding the exclusion of some facts and should include more basic facts for reports to wider audiences. The key issue is that analysts should tailor their reports to the intended audience. This seems silly to me - what if the specific group were his ‘less-educated’ clients? the question doesn’t specify that these clients are the smart ones with whom you can exclude basic facts. maybe they are a group of clients that need extra facts in order to understand the investment? Or am i reading too much into another ethics question again?

standard 3 c suitability When the members and candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must only make investment recommendation or take investment actions that are consistent with the stated objectives and constraints of the portfolio. so, that’s y ans D

Bump Talk about grey area, this one caught me. I answered C, when the now obvious answer is D. It seems very contradictory to have fair dealings and suitability, which is why you really need to nail down the exact aim of the individual standards. Good question.