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Answer: Only by emailing the recommendation to the largest client before distributing it to all other clients.
Garcia violated Standard III(B), Fair Dealing, by emailing the recommendation to her largest client before disseminating it to all other clients. This action provided the largest client with an unfair advantage. However, she did not violate the standard by calling the largest client after the recommendation was widely distributed, as this follow-up is permissible once all clients have been informed. Members and candidates must ensure that all clients receive recommendations simultaneously to uphold fair dealing principles.
Author: LeetQuiz Editorial Team
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Susana Garcia, CFA, a respected transportation sector analyst, completes a new investment recommendation. The next morning, she emails the recommendation to her firm's largest client. After lunch, she emails it to all other firm clients. Later, she calls the largest client to discuss the recommendation in detail. Garcia has violated the Standard relating to fair dealing:
A
Only by calling the largest client to discuss the recommendation in detail.
B
Only by emailing the recommendation to the largest client before distributing it to all other clients.
C
Both by calling the largest client to discuss the recommendation and by emailing it to the largest client before sending it to all other clients.
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