Standard III (B) - Fair Dealing
Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.
Guidance
- There should be no discrimination against any clients when providing investment recommendations or taking any investment actions.
- All clients must have fair chance on every recommendation and investment action
- If a client is unaware of a recommendation, and the client wants to place an order on the same stock, the member must advise the client about the recommendation and make necessary change if required before accepting trade order.
- “Fair” treatment does not mean “equally”. For each client any investment action should be taken after considering his investment objectives and circumstances.
- An investment firm may provide different levels of service to different customers. This is considered okay as long as the same is disclosed, and doesn’t disadvantage any client.
Create Your Free Account
Create a free account to access this content and join our community of learners.
You'll get access to:
- Access the full tutorial
- Join our learning community
- Track your progress
- Bookmark content for later