Answer: prohibiting consideration of advanced interest when allocating trades for new issues.

## Explanation **Correct Answer: A** **Why A is correct:** According to CFA Institute's Standard III(B) - Fair Dealing, when allocating trades, members should not consider advanced interest or indications of interest when allocating new issues. This ensures fair treatment of all clients and prevents favoritism based on early expressions of interest. **Why B is incorrect:** While bundling orders for efficiency may be appropriate in some cases, the Standard specifically addresses the need to avoid considering advanced interest in new issues. The "first-in, first-out" basis might not always be appropriate or fair, especially when dealing with different client types or account sizes. **Why C is incorrect:** Giving client accounts participating in a block trade execution prices corresponding to order arrival time could create unfairness, as clients who submit orders later might receive less favorable prices. The Standard requires fair allocation procedures that consider factors like order size, account type, and investment objectives, not just order arrival time. **Key Points:** - Standard III(B) requires fair dealing with all clients when taking investment action - Allocation procedures should be fair and not favor any client over others - Advanced interest in new issues should not be considered in allocation decisions - Procedures should be disclosed to clients and applied consistently

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