"morality" exercise:Responsibility of investment industry

B is correct because GIPS standards (0.A.9) state “firms must make every reasonable effort to provide a compliant presentation to all prospective clients.” As long as a prospective client has received a compliant presentation within the previous 12 months, the firm has met this requirement. It is a GIPS recommendation, not a requirement, that all clients receive a compliant presentation on an annual basis (0.B.4).

A is incorrect because firms are not required to provide a complaint presentation to existing clients, only prospective clients. However, it is a recommendation that existing clients receive at least annually a compliant presentation.

C is incorrect because firms are not required to provide a complaint presentation to existing clients, only prospective clients. However, it is a recommendation that existing clients receive at least annually a compliant presentation.

B is correct. The least appropriate action would be for the decision maker to go ahead and make a decision based on insufficient information. By doing so, the decision maker could cause harm and make the situation worse. The ethical decision-making framework is iterative, and users can move between phases rather than undertaking them in any one order. If a decision maker is not yet ready to make a decision, the most appropriate course of action would be to ask someone else to give guidance and determine what additional information is needed to clarify the situation.

A is incorrect. If a decision maker is not yet ready to make a decision the most appropriate course of action would be to ask someone else to give guidance and determine what additional information is needed to clarify the situation.

C is incorrect. If a decision maker is not yet ready to make a decision the most appropriate course of action would be to ask someone else to give guidance and determine what additional information is needed to clarify the situation.