This case relates to fair dealing among clients. CFA Institute Standard III(B): Fair Dealing requires CFA Institute members to deal fairly and objectively with all clients when providing investment analysis and making investment recommendations. The Standard requires that information about investment recommendations be disseminated in such a manner that all clients have a fair opportunity to act on the information. Scherzer distributes the recommendation update reports to all clients simultaneously via email, giving each an opportunity to act on the information. The Code and Standards do not require Scherzer to publish the reports to the public on the firm’s website. Scherzer is also not limited by the Code and Standards to communicating with clients about investments only when an investment recommendation is provided and can provide updated or clarifying information to clients as appropriate. The Code and Standards allow CFA Institute members to provide more personal, specialized, or in-depth service to clients who are willing to pay for premium services through additional fees, as long as those services do not disadvantage other clients who do not pay additional fees, the differing levels of service are disclosed to clients, and the services are made available to all. Choice A is the best response.
This case is based on a question sent to the CFA Institute Ethics Helpdesk.