Unsolicited Transaction

Dear members:

Would you please help me to explain exactly the term “unsolicited transaction”. I read it when i had studied Ethical and Professional Standard but i think that i am still not clear about it. Your support will be greatly appreciated and hope someone who take the exam on 6 - Dec - 2014 CFA level 1 exam do well. Thanks.

I suspect that they mean a transaction initiated by a client, as opposed to a transaction prompted by the actions of an advisor (e.g., by making or changing a recommendation).

If you issue a report that includes a buy recommendation and one of your clients phones you in response to buy the stock, that’s not an unsolicited transaction.

If a client phones you out of the blue and asks that you buy a stock for their portfolio, that’s an unsolicited transaction.

Thank you so much S2000magician, I got your point.

You’re quite welcome.