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Question:
Matt O'Neill, CFA, is an advisor for Century Investments, a retail financial services firm. Century has a firmwide policy that its advisors recommend the firm's own investment products to clients unless Century does not offer a product suitable for the client's needs. Can O'Neill follow his firm's policy without violating the Code and Standards?
A
Yes, if O’Neill discloses this policy to his clients.
explanation
Standard III(A) Loyalty, Prudence, and Care states that members and candidates must inform clients of any limitations that affect their advisory relationships. A policy to favor recommending a firm's own products is an example of such a limitation.
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