Answer: priority of transactions.

## Explanation Alice Chan has violated **Standard VI(B): Priority of Transactions**. ### Key Points: 1. **Standard VI(B) - Priority of Transactions**: This standard requires that investment transactions for clients and employers must have priority over transactions in which a member or candidate is the beneficial owner. 2. **Violation Details**: - Chan executed trades for her sister's account (a family member's account) after executing trades for clients - Even though she has no beneficial interest in her sister's account, family members' accounts are generally considered to have the same priority as the member's own account - The standard applies to accounts in which members or candidates have a direct or indirect beneficial interest 3. **Why not other options**: - **A. Disclosure of conflicts**: While disclosure might be relevant, the primary violation is the order of transactions - **C. Diligence and reasonable basis**: There's no indication that her research was inadequate; the issue is with the transaction priority 4. **Additional Considerations**: - The fact that the stock declined and caused losses doesn't change the violation - The violation occurred when she executed her sister's trade after client trades - Family member accounts should be treated with the same priority as the member's own account **Correct Answer: B** - Chan violated the Standard relating to priority of transactions by executing her sister's trade after client trades.

Author: LeetQuiz .