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Answer: should notify clients that additional information is available if a recommendation is shared in capsule form.
**Explanation:** According to the CFA Institute Standards of Professional Conduct, Standard V(B) - Communication with Clients and Prospective Clients requires that members communicate investment recommendations in a fair and balanced manner. When investment recommendations are communicated in capsule form (brief or summary format), members should: 1. Make reasonable efforts to ensure that the communication is fair, accurate, and complete 2. Notify clients that additional information is available upon request 3. Provide the additional information if requested **Analysis of options:** **A. Incorrect** - While written communication is often preferred for documentation purposes, the Standard does not require that investment recommendations must be shared in written form. Recommendations can be communicated orally or in other formats as long as they meet the requirements of the Standard. **B. Correct** - This is the accurate requirement under Standard V(B). When recommendations are shared in capsule form, members should notify clients that additional information is available. **C. Incorrect** - While social media can be used for communication, relying solely on social media may not meet the requirements for fair and balanced communication, especially if not all clients have access or if the platform doesn't allow for proper disclosure of limitations and risks.
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To be consistent with the Standard relating to communication with clients and prospective clients, a member:
A
must share in written form investment recommendations with clients.
B
should notify clients that additional information is available if a recommendation is shared in capsule form.
C
is permitted to share investment recommendations solely using a social media service to which most clients have access.
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