Standard I(D) states that members shall not engage in any professional conduct involving dishonesty, fraud, or deceit Hernandez is being dishonest by using a TFA mailing to bring in prospects that she knows cannot become TFA clients with the apparent intent of soliciting them for her own private business. Note that Standard VI(A) deals with disclosing conflicts of interest that would impair the member’s ability to make unbiased and objective recommendations, such as serving on a board or having a beneficial interest in a security. Standard III(C) states that a member must inquire as to a client’s financial situation and consider the appropriateness of investment recommendations for each client. Because there are no specific recommendations being given, Standard III(C) does not apply here |
