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Answer: simultaneously within the firm and to customers.
According to Standard III(B), Fair Dealing, the recommended practice to ensure fair dealing is to communicate investment recommendations simultaneously within the firm and to customers. This approach prevents any unfair advantage or disadvantage to clients or firm personnel. Additionally, firms should establish guidelines to prevent personnel with knowledge of pending recommendations from acting on or discussing them prematurely, ensuring compliance with ethical and professional standards.
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Jayson Kite, CFA, a senior analyst, is preparing a research report on a shipping company. Kite concludes that the stock is a strong investment and decides to issue a "buy" recommendation. According to the recommended procedures for compliance, Kite should communicate the recommendation:
A
first within the firm and subsequently to customers.
B
first to customers and subsequently within the firm.
C
simultaneously within the firm and to customers.
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