John MacDaniel, CFA, is a trust officer for Confederation Trust Company. MacDaniel has been using Joe Stein, a broker, almost exclusively for trust account brokerage transactions. For those stocks in which Stein’s firm makes a market, Stein has been giving MacDaniel lower prices for personal purchases and higher prices for personal sales than he has given MacDaniel’s trust accounts and other investors. John’s actions violate which of the following CFA Institute’s Standards of Professional Conduct: I. Standard III (B) Fair Dealing and Standard III © Suitability. II. Standard IV (B), Additional Compensation Arrangements. III. Standard I (B), Independence and Objectivity IV. Standard III (A), Loyalty, Prudence and Care. A. I and II only B. II and IV only C. I, III, and IV only D. I, II, III, and IV
B. notice that I is not violated and its part of every other answer choice.
B - I is not violated b/c suitibility is not violated.