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Answer: Yes, by sending the recommendation to her sister one day after sending it to her other clients
## Explanation Becky Wilkins **has violated** the Standard relating to fair dealing **by sending the recommendation to her sister one day after sending it to her other clients**. **Key Violations:** 1. **Delayed dissemination to sister**: - Wilkins sent the recommendation to her sister **one day after** sending it to all other suitable clients - This creates **selective disclosure** and violates fair dealing principles - All clients in the same category should receive recommendations **simultaneously** 2. **Fair dealing requirements**: - Standard III(B): Fair Dealing requires that investment recommendations be distributed to **all clients who can act on the recommendation** at the same time - Delaying dissemination to any client (even family members) constitutes unfair treatment **What was acceptable:** - Providing additional details to premium fee-paying clients is generally acceptable as long as the initial recommendation was distributed fairly to all clients simultaneously - The timing of the initial recommendation distribution is what matters for fair dealing compliance **Correct approach**: Wilkins should have sent the recommendation to her sister at the same time as all other suitable clients.
Author: LeetQuiz Editorial Team
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Becky Wilkins, CFA, an analyst, prepares a buy recommendation for a stock. The recommendation is also suitable for her sister, a standard fee-paying client. To avoid a conflict of interest, Wilkins sends the recommendation to her sister one day after sending it to all of her other suitable clients. Wilkins then calls all of her premium fee-paying clients to provide further details about the recommendation.
Has Becky violated the Standard relating to fair dealing?
A
No
B
Yes, by providing further details about the recommendation to her premium fee-paying clients
C
Yes, by sending the recommendation to her sister one day after sending it to her other clients
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