1. If a client’s IPS says to buy fixed income only, and he hears about an exciting new stock, can you buy it for him if he tells you and gives you written constent to make this exception and to buy it, or do you have to refuse?
Consider this sentence from CFAI Volume 1 page 60:
“In cases of unsolicited trade requests that a member or candidate knows are unsuitable for the client, the member or candidate should refrain from making the trade or seek an affirmative statement from the client that suitability is not a consideration.”
2. Are these two statements true?
a) For client directed brokerage, you must try your best to seek best execution (and ask the client to give you a signed paper affirming this) but if you cannot get it, you can still make the trade.
b) If you cannot get best execution, to make the client directed brokerage trade you don’t have to seek consent or disclosure since that’s already been taken care of at the start of the relationship when you told the client you would try your best but couldn’t guarantee anything. |
发表于 2013-3-31 12:43
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