Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.
Client interests come first, followed by the employer and, then. personal interests of the member or candidate. The only exception is that the integrity of capital markets must take precedence over the client’s interests if there is a conflict. Prudence requires caution and discretion. When handling funds of a client, prudence requires that you treat them with the same skill, care, and diligence as you would treat your own funds.
Recommended Procedures for Compliance:
Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.
The standard focuses on dealing fairly and objectively with all clients. It does not mean equally because the circumstances of every client will be different. Also, a firm may offer different levels of services. A client paying a higher fee for a personalized service cannot be treated in an equitable manner with one who is not. Moreover, it is also not possible to communicate information to all clients at the same time as the modes of communication may vary (e-mail, phone, and fax).
Recommended procedures for compliance: