One of the discretionary accounts managed by Farnsworth is the Jones Corporation employee profit- sharing plan. Jones, the company president, recently askedFarnsworth to vote the shares in the profit- sharing plan in favor of the company-nominated slate of directors and against the directors sponsored by a dissident stockholder group. Farnsworth does not want to lose this account because he directs all the account's trades to a brokerage firm that provides Farnsworth with useful information about tax-free investments. Although this information is not of value in managing the Jones Corporation account, it does help managing several other accounts. The brokerage firm providing this information also offers the lowest commissions for trades and best execution. Farnsworth investigates the directors' issue, concludes that management's slate is better for the long-run performance of the firm than the dissident group's slate and votes accordingly.Farnsworth:
A. Did not violate the Standards in voting the share in the manner requested by Jones or in directing the trades to the brokerage firm.
B. Violated the Standards in directing the trades to the brokerage firm but not in voting the shares as requested by Jones.
C. Violated the Standard in voting the shares in the manner requested by Jones and in directing trades to the brokerage firm.
D. Violated the Standards in voting the shares in the manner requested by Jones but not in directing trades to the brokerage firm.
One of the discretionary accounts managed by Farnsworth is the Jones Corporation employee profit- sharing plan. Jones, t
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One of the discretionary accounts managed by Farnsworth is the Jones Corporation employee profit- sharing plan. Jones, t
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