The Standard III(B) indicates that members shall deal fairly and objectively with all clients when disseminating recommendations and material changes. Fair dealing requires that members make every effort to treat all clients, whether they are individuals or institutions, in a fair and impartial manner. By essentially making a recommendation to his friend first, Stroh breached the standard because he disadvantaged his clients in favor of his friend. Also, Stroh still had to verify what the friend said about the comparative advantage was true. Standard V(A), Diligence and Reasonable Basis, and that the investment would be appropriate for his friend Standard III(C), Suitability. Mentioning his training, which included the CFA designation, was not inappropriate |
