Duties To Clients

Question 1

Name all the section of duties to clients

Answer 1

1- loyalty prudence and care
2-fair dealing
3- suitability
4-performance presentation
5-preservation of confidentiality

Question 2

Describe loyalty prudence and care

Answer 2

Members have duty of loyalty to theirs clients and mist act with reasonable care and exercise prudent judgment, mist act for the benefits of their clients and place their interest before their employers

Question 3

Describe fair dealing

Answer 3

Must deal fairly and objectively with all clients when providing investment analysis making investment recommendations taking investment action or engaging in other professional activities

Question 4

Describe suitability

Answer 4

1-When in advisory relationship members must :

-make a reasonable inquiry into a clients prospective clients investment experience, risk and return objectives and financial constraints prior to making any investment recommendation or taking investment action must reassess and update this information.

• determine that an investment is suitable to the clients written objectives mandates and constraint.
• judge the suitability of investment in the context of the clients total portfolio

2- members can only make investment recommendation that are consistent with the stated objectives

Question 5

Describe performance presentation

Answer 5

When communicating investment performance, members must make reasonable effort to ensure that it is fair accurate and complete

Question 6

Describe preservation of confidentiality

Answer 6

Must keep information about current former and prospective clients unless:

-the information concerns illegal activities on the part of the clients

• disclosure is required by law
• the clients permits disclosure of the information