Which of the following policies on communication of investment recommendations is most likely to be in compliance with standard 3B – fair dealing?
A) all clients are communicated with on a uniform basis
B) information is disseminated in a way such that all clients have a fair opportunity to act on every recommendation
C) communications are made with clients in order of size
Hi,
The answer should be Option B.
Each member or candidate is obligated to ensure that information is disseminated in such a manner that all clients have a fair opportunity to act on every recommendation.
Option A is incorrect because communicating with all clients on a uniform basis presents practical problems for members and candidates because of differences in timing and methods of communication with various types of customers and clients.
Members and candidates should encourage their firms to design an equitable system to prevent selective or discriminatory disclosure and should inform clients about what kind of communications they will receive.
Hope this helps!