Answer-first summary for fast verification
Answer: Yes, Milton violated the Standard relating to loyalty, prudence, and care.
According to **Standard III(A): Loyalty, Prudence, and Care**, members must act in the best interests of their clients and disclose any conflicts of interest. Milton's failure to disclose the bonus he receives for recommending proprietary products creates a conflict of interest, violating this Standard. While he considers client suitability (Standard III(C)), the primary violation lies in the lack of transparency regarding the financial incentive, which undermines client trust and fiduciary duty.
Author: LeetQuiz Editorial Team
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Andrew Milton, CFA, is an investment advisor who recommends proprietary products to clients without disclosing a bonus he receives for doing so. Has Milton most likely violated the CFA Institute Standards of Professional Conduct?
A
No, Milton has not violated any Standards.
B
Yes, Milton violated the Standard relating to suitability.
C
Yes, Milton violated the Standard relating to loyalty, prudence, and care.
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