Asset Manager Code (AMC) Guidance

Sue’s reason for rejecting Vera’s request is _most likely_:

Incorrect. Actually, Sue’s reason for rejecting Vera’s request isn't consistent with the Code and Standards, which do allow for different service tiers under some conditions.

Incorrect. Sue’s reason for rejecting Vera’s request isn't a misinterpretation of Standard III(C): Suitability, which addresses an investment’s characteristics and its suitability for an investor’s portfolio.

That's right. Sue rejected Vera’s request purely because she wanted to offer differing levels of service in a tiered structure. Standard III(B): Fair Dealing requires members and candidates to "deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities." As long as the tier structure is fully disclosed to existing and prospective clients, it is permissible. So Sue has misinterpreted this provision.

consistent with the Code and Standards.

a misinterpretation of Standard III(C): Suitability of the Code and Standards.

a misinterpretation of Standard III(B): Fair Dealing of the Code and Standards.