Jamie Pyles, a portfolio management trainee for a money management firm, is trying to create a client base. He phones prospective clients, telling them that he is a portfolio manager. He informs prospective clients that based on the last five years of performance of his firm, he can guarantee the client at least a 75% return. He informs them that his firm can provide all of the services that they will ever need. What is the minimum number of misrepresentations Jamie has made to the prospective clients in violation of Standard I©, Misrepresentation?
A) 5
B) 3
C)2
Explanation
There are at least three misrepresentations. First, that Jamie is a portfolio manager, when he’s really a trainee. Second, that the firm can provide all of the services they will ever need. Third, that he can guarantee a 75% return.
Correct Answer : B
For the second violation is this wrong because in the question Jamie states the firm as “his”? Or is it wrong regardless because he says the firm can provide all the services they will ever need.