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Ethical and Professional Standards Q86

0. Eileen Connors is a chief trader for Ascot Investments, a money management firm. She has been told recently by her most lucrative client Shelby Company that if the performance of its accounts did not improve they will be forced to change their money managers. Connors has purchased certain securities a few days back, whose price has gone up significantly. She has failed to allocate these trades due to her busy schedule. After the threat from Shelby, she decides to allocate the profitable trades to Shelby‟s account, while spreading the losing trades to other Ascot‟s accounts. Has Connors violated any Standard?

  • Option : A
  • Explanation : Connors has violated Standard III(B) Fair Dealing by failing to deal fairly with all her clients in taking these investment actions.
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