shootingstar

She has "reasonable and adequate basis" for making the recommendation because she thoroughly researched all of the funds and selected the best based upon her research criteria.

"Shouldn't she have investigated the risk profile and return requirements of every portfolio first before putting it in every portfolio"

-You're thinking about suitability, which isn't mentioned. She would, of coarse, need to judge whether the investment is suitable for any portfolios before purchasing the security. This may, or may not have been done.

But if the holding IS suitable for her existing clients, it should be recommended to them. Not wanting to disturb their comfort isn't a good reason to neglect their portfolios (hence the fair dealing violation).



Edited 1 time(s). Last edit at Saturday, September 5, 2009 at 12:38PM by McLeod81.