“Litman performs comprehensive quarterly reviews with the owners of ten largest accounts ans similar annual reviews with the remaining clients (20 accounts)”
Do you think this is Fair Dealing to Clients?
Isn’t this being biased towards the rich accounts? Is this allowed?
Ref: Q4-CFAI-PM-MOCK-2010
I guess this is different levels of service. Fair dealing specifically addresses issue of giving priority to certain client while giving investment advice, trading and allocation that is primarily based on returns. You could provide some clients with monthly, quarterly, annual review service without disadvantaging anyone.
Agree, but there was no mention of different levels of service disclosure in the vignette and still the ans was no violation!
Different levels of service can be offered as long as they’re fully disclosed and offered to every client. Different levels of service must not disadvantage clients. Since annual review of ips is required, the lower service level clients are not disadvantaged. I think lower service levels are generally disadvantaged mainly if allocation procedures are different and timeliness of recommendations are different