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CFA Level I · CFA Level I Exam · Guidance for Standard III: Duties to Clients

A manager offers a premium research service with in-depth analyst access at a higher fee. Which approach is most consistent with Standard III(B)?

The manager should disclose the different service levels and make premium service available to all clients. Standard III(B) permits differentiated service for those willing to pay, provided others are not disadvantaged and the levels are not offered selectively.

  1. AOffer it quietly to a few clients the manager prefers
  2. BOffer it to selected clients and reduce others' trade priority
  3. CDisclose the service levels and make premium service available to everyoneCorrect

Explanation

Different service levels are permitted, but they must not disadvantage other clients, should be disclosed to clients and prospects, and should be available to everyone. Selective offering or lower trade priority for others violates this.

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