Ethical and Professional Standards Q48

48Bernhard Investment and Brokerage Company, has recently changed its stock selection method based on fundamental analysis to technical analysis. After testing it in-house under various scenarios, the new method seems more appropriate to the investments done by Bernhard. Kurt Ludwig, CFA, a portfolio manager with Bernhard feels that his clients will not understand the change and decides not to inform them. The most appropriate action Ludwig should take to avoid a violation of the Code and Standards is:

Option : A
Explanation : Ludwig must disclose to his clients the change in the process of selection. Refer to Standard V(B) Communications with Clients and Prospective Clients

Forgot your password?

I agree with the Terms.