Answer: both Policy 1 and 2.

## Explanation Li should follow **both Policy 1 and Policy 2** to be consistent with the Standard relating to fair dealing. **Policy 1 Analysis**: - Limiting the number of people who know about an upcoming recommendation helps prevent **selective disclosure** and **information leakage** - This prevents certain individuals from acting on the information before it's widely disseminated - Supports fair dealing by ensuring all clients receive the information at the same time **Policy 2 Analysis**: - Limiting the time between decision and dissemination reduces the risk of **information advantage** for those who know about the recommendation - Prevents the recommendation from becoming stale or less valuable due to delays - Ensures timely and fair distribution to all clients **CFA Standards Compliance**: - Both policies align with Standard III(B): Fair Dealing - They help ensure that: - All clients have equal access to recommendations - No client group receives preferential treatment - The integrity of the recommendation process is maintained - These practices prevent front-running and ensure fair treatment of all clients

Author: LeetQuiz Editorial Team