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Answer: Disclose to clients and potential clients the methodology for selecting accounts to be included in an order.
**Explanation:** - **Option A** is incorrect because Standard III (B) on Fair Dealing stipulates that members should not offer different levels of service selectively to clients. Instead, any variations in service levels should be disclosed to all clients, especially if they involve the same or different fees. - **Option B** is correct as it aligns with Standard III (B), which requires members to disclose to clients and prospective clients the process for selecting accounts to participate in an order. This ensures transparency and fair treatment. - **Option C** is incorrect because members should limit the number of individuals privy to upcoming investment recommendations to prevent leaks before dissemination. Informing all staff increases the risk of premature disclosure and violates fair dealing principles. Ethical and Professional Standards advocate for practices and procedures that prevent violations of the Code of Ethics and Standards of Professional Conduct.
Author: LeetQuiz Editorial Team
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According to the recommended procedure for compliance with the Standard on fair dealing, a member employed by a large firm should:
A
Provide varying levels of service to clients selectively, depending on their investment requirements.
B
Disclose to clients and potential clients the methodology for selecting accounts to be included in an order.
C
Notify all firm employees about the details of forthcoming investment recommendations to ensure all clients' investment needs are addressed.