When does a duty to clients override pressure from an employer?
In Ethics questions, I get confused when the employer wants something that seems commercially reasonable, like helping a large client first. How should I decide?
Commercial pressure does not erase duties to clients. If the issue involves suitability, fair dealing, priority of client transactions, or full disclosure, the answer must protect the client duty first.
Suppose a firm receives a limited allocation of a new bond issue and three client accounts are eligible. The portfolio manager wants to give all bonds to the client most likely to renew its advisory contract. That is not fair dealing. A better answer applies the firm's documented allocation policy among eligible accounts and keeps records showing why the allocation was fair.
Employer interests matter, but they cannot justify disadvantaging clients who are owed equal treatment under the relevant policy.
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