Answer-first summary for fast verification
Answer: Yes, to all existing clients
According to CFA Institute Standard III(A): Loyalty, Prudence, and Care, and Standard V(B): Communication with Clients and Prospective Clients, investment professionals must disclose all material information to clients, including changes in fee structures. The change in fee calculation method is material information that affects all clients, regardless of whether their fees increase or decrease. Harmon must disclose the new method to all existing clients to ensure transparency and allow them to make informed decisions about their accounts.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
No comments yet.
According to the Standards, is Harmon required to disclose the new fee calculation method to existing clients?
A
No
B
Yes, to all existing clients
C
Yes, but only to existing clients incurring a higher fee