Schweser Exam 1 Afternoon ethics question 5

It says in the solution: “A firm may put a stock on its recommended list without ever making its change in recommendation public, since there is no requirement that they do so”.

Is it not a violation of the standard to not make recommendation changes public? Or is a firm only required to make a change in recommendation be known to all clients at the same time, but not the public itself?

I believe you only need to make the recomendation to the clients who have expressed interest in the security or are already invested in it. That was my thought process around this question anyways. Think about a firm having to send out mass emails or publications on each and every stock when they were upgraded or downgraded - doesn’t make much sense. I think the key here is you have to release information to the parties that would be affected by the release of the information in a fair and timely manner.

Agreed. Any thoughts on this one as well?