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Answer: No.
According to **Standard III (C) Suitability**, a suitability review is most effective when the client discloses their complete financial portfolio, including assets not managed by the member or candidate. If clients withhold information, the suitability analysis must be based on the available information. Members can still develop a suitable investment program for the disclosed assets, even without complete information. Additionally, Standard III (C) permits the development of a strategic asset allocation and investment program, which can be presented in separate documents or incorporated into the IPS. Ayers' approach of keeping these records in a separate document is compliant with the Standard. - **Option B** is incorrect because using separate documents for the investment program is allowed under Standard III (C). - **Option C** is incorrect because members are permitted to develop an investment program based on the information provided, even if it is incomplete.
Author: LeetQuiz Editorial Team
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Johanna Ayers, CFA, is a portfolio manager who has developed an investment policy statement (IPS) for a new client, addressing the client's risk and return objectives and constraints. The client does not disclose assets managed by other firms, and Ayers agrees to manage only the disclosed portion of the client's assets. She also develops an investment program and strategic asset allocation in a separate document for the portion she manages. Has Ayers most likely violated the Standard relating to suitability?
A
No.
B
Yes, by maintaining the investment program and strategic asset allocation in a document separate from the IPS.
C
Yes, by agreeing to manage a portion of the client's assets without knowledge of the client's other assets managed by external firms.
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