Maggie McCarthy is an individual investment advisor who uses mutual funds for her clients. She typically chooses from a list of 40 funds that she has thoroughly researched. The Figgs, a married couple that are a client, asked her to consider the Boilermaker fund for their portfolio. McCarthy had not previously considered the fund because when she first conducted her research three years ago, Boilermaker was too small to be considered. However, the fund has now grown in value, and after doing thorough research on Boilermaker, she found the fund was by far the most outstanding large company value fund in her list of funds. She puts the fund in the Figgs’ portfolio, and in all new clients portfolios, but not in any of her other clients’ portfolios. Her reasoning is that her existing clients were comfortable with their current holdings, and she did not want to risk disturbing their comfort. Has McCarthy violated any Standards? McCarthy has:
A) violated the Standards by not having a reasonable and adequate basis for making the recommendation.
B) not violated the Standards.
C) violated the Standards by not dealing fairly with clients.
Nancy Westfall is an individual investment advisor who uses mutual funds for her clients. She typically chooses funds from a list of 40 funds that she has thoroughly researched. The Craigs, a married couple that is a client, asked her to consider the Eligis fund for their portfolio. Westfall had not previously considered the fund because when she first conducted her research three years ago, Eligis was too small to be considered. However, the fund has now grown in value, and after doing thorough research on the fund, she finds the fund has suitable characteristics to be included in her acceptable list of funds. She puts the fund in the Craigs’ portfolio but not in any of her other clients’ portfolios. The fund ends up being the poorest performing fund in the Craigs’ portfolio. Has Westfall violated any Standards? Westfall has:
A) violated the Standards by not dealing fairly with clients.
B) violated the Standards by not having a reasonable and adequate basis for making the recommendation.
C) not violated the Standards.
I see conflicting answers for the above 2 in schweser qbank. Please advice.
I though either answer should be not violated for both or
violated for both coz of fair dealing clause
I will post answer after 3 more posts.Thanks |
发表于 2013-4-12 22:16
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