medium · CFA Level I ethics
Marcus, a manager at Harbourlight REIT, directs client trades to a brokerage firm, Quill & Ash. Marcus learns that his firm’s trade allocation system occasionally prioritizes the firm's largest, most profitable clients during oversubscribed IPOs. When he brings this to the attention of his supervisor, he is told that this is 'industry practice' for premium clients. Marcus should: Continue with the practice as it is part of his firm’s established business model for premium clients. Dissociate from the practice and insist on a pro-rata allocation for all suitable clients to comply with Standard III(B) Fair Dealing. Only complain if the smaller clients specifically ask for their allocation status in writing.
- Continue with the practice as it is part of his firm’s established business model for premium clients.
- Only complain if the smaller clients specifically ask for their allocation status in writing.
- Dissociate from the practice and insist on a pro-rata allocation for all suitable clients to comply with Standard III(B) Fair Dealing.
Sign up free to see the explanation and track your rank →
More CFA Level I ethics practice
- If she sells the stock for her personal account before the report is public, she has:
- Vesper Foods Investment Management has a policy to notify all clients of a 'Sell' rating v
- A trader at Vesper Foods learns from an internal IT error that the firm's quarterly revenu
- An advisor at Oakridge Capital is managing an account for hi… — The advisor should treat t
- The trader should:
- Which professional control is mandated for CFA candidates when using AI outputs?
- According to Standard VI(B) Priority of Transactions, which statement best describes Julia
- Under Standard VI(B) Priority of Transactions, the manager should: