Explanation

Wynn's actions violate the Standard related to fair dealing because:

• CFA Institute Standard III(B) - Fair Dealing requires that members must deal fairly and objectively with all clients when taking investment action, making investment recommendations, or engaging in other professional activities

• Violation analysis:

  • Initial email distribution: Sending the research report to all clients simultaneously is appropriate and demonstrates fair dealing

  • Calling premium fee-paying clients: This action does NOT violate fair dealing standards because:

    • Different service levels based on fee structures are permissible
    • Premium clients paying higher fees may reasonably expect additional services
    • The initial recommendation was distributed to all clients at the same time

  • Declining calls from standard fee-paying clients: This action DOES violate fair dealing because:

    • All clients who receive investment recommendations should have reasonable access to the analyst
    • Delegating calls to an associate may be acceptable, but refusing to speak with certain clients while providing personal service to others creates an unfair advantage
    • The standard requires that all clients be treated fairly in terms of access to investment professionals

• Key principle: While different service levels based on fee structures are acceptable, all clients must be treated fairly and have reasonable access to investment professionals for questions about recommendations they receive

• Better approach: Wynn could have:

  • Taken calls from all clients herself
  • Had her associate handle calls for all clients consistently
  • Established clear communication protocols that apply equally to all client categories

Correct Answer: C - Yes, by declining the calls of standard fee-paying clients and asking her associate to reply