Wouter Duyck, CFA, is the sole proprietor of an investment advisory firm serving several hundred middle-class retail clients. Duyck claims to be different from his competitors because he conducts research himself. He discloses that to simplify the management of all these accounts, he has created a recommended list of stocks, from which he selects investments for all of his clients based on their suitability. Duyck's recommended list of stocks is obtained from his primary broker, who has completed due diligence on each stock. Duyck's recommended list least likely violates which of the following CFA Institute Standards of Professional Conduct?
A is correct because Standard Ⅲ (B) Fair Dealing concerns the fair treatment of clients when making investment recommendations or taking investment action, but there is no indication the adviser has discriminated against any clients in regard to his recommendations because he invests all clients in the same universe of stocks. The adviser has violated Standard Ⅰ (C) Misrepresentation with his research, which is not independently created and instead relies upon information provided by his broker. This is contrary to the adviser telling clients he does his own independent investment research. In addition, the adviser has violated Standard V (A) Diligence and Reasonable Basis because he has not made reasonable and diligent efforts to determine if the third party's research is sound.