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?
Yes, if O’Neill discloses this policy to his clients.
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.