so confused! why B is wrong? the answer is C. Thanks, Alexander Newton, CFA, is the chief comliance officer for Mills Investment Limited. Newton institutes a new policy requireing the pro rata distribution of new security issues to all established discretionary accounts for which the new issues are appropriate. the policy provides for the distribution of new issues to newly established discretionary accounts after the one-month anniversary date. This policy is disclosed to all existing and potential clients. Did Newon violate and CFA institute standards of professional conduct? B. Yes. because the distribution policy fails to treat all discretionary accounts equally c. Yes. because the disclosure of inequitable allocation methods does not fulfill the duty for fari and equitable trade allocation procedures.
Its a ethics violation because its does not treat the clients fairly. A unfair company policy is a violation because it does not allow a fair treatment to its clients, even full disclosure of the policy doesn’t treat the clients fairly.
But why B is Wrong? spirit Wrote: ------------------------------------------------------- > Its a ethics violation because its does not treat > the clients fairly. A unfair company policy is a > violation because it does not allow a fair > treatment to its clients, even full disclosure of > the policy doesn’t treat the clients fairly.
sometimes you have to chose the best answer. Out B and C, C is the better answer.
B is wrong because there is a difference between “equally” and “fairly”. Clients should be treated “fairly”. It is impossible to treat all clients “equally”. Generally, I have found any ethics answer with the word “equally” in it is not right. Actually, all I have came across. Good luck!
oh, that’s right! thanks!!! loopvinny84 Wrote: ------------------------------------------------------- > B is wrong because there is a difference between > “equally” and “fairly”. Clients should be treated > “fairly”. It is impossible to treat all clients > “equally”. Generally, I have found any ethics > answer with the word “equally” in it is not right. > Actually, all I have came across. Good luck!