Question

Sulejman is a broker who executes client-directed trades for several high-net-worth individuals. Sulejman does not provide any investment advice and only executes the trading decisions made by clients. Sulejman must

	a.	meet his fiduciary duty imposed by Standard III (A) when carrying out his professional responsibilities.
	b.	make sure the investments meet the portfolio requirements of his client before making the trades.
	c.	execute the trades using reasonable care and prudent judgment.

Answer 1

Answer) option c Executes the trades using reasonable care and prudent judgement Explanation-In this instance, Sulejman serves in an execution-only capacity and his duty of loyalty, prudence, and care is centered on the skill and diligence used when executing trades—namely, by seeking best execution and making trades within the parameters set by the clients (instructions on quantity, price, timing, etc.). Acting in the best interests of the client dictates that trades are executed on the most favorable terms that can be achieved for the client. Given this job function, the requirements of the Code and Standards for loyalty, prudence, and care clearly do not impose a fiduciary duty.