CFA Level I sample question

CFA Level I Standard III(B) Fair Dealing question

Ethical and Professional Standards / Standard III(B) Fair Dealing

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Standard III(B) Fair Dealing sample question

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Ethical and Professional Standards

Standard III(B) Fair Dealing

A manager receives an oversubscribed IPO allocation suitable for several client portfolios. The compliance policy calls for pro rata allocation among suitable accounts after excluding accounts with investment restrictions. The manager instead gives the full allocation to the largest accounts to reward long relationships. The manager most likely violates Fair Dealing because:

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