CFAI Volume 1 Ethics question 57

CFA Level II Ethics
#1

“According to the policy, Aiklin allocates IPO shares to each investment manager and each manager has responsibility for allocating shares to accounts for which the IPO is suitable”

the question asks is the policy consistent with required and recommended CFA standards?

The correct answer is B: No, because the IPO policy disadvantages certain clients?

i don’t see any how certain clients would be disadvantaged…? I see there is no guidance how the managers will allocate the shares but am I missing something here? Why is B correct and not A?

#2

you need to first determine the clients for whom the IPO is suitable then allocate shares to the managers of the clients.

that way would result in a more equitable distribution … vs. what is being done now - allocate to manager and then he allocates to the clients to whom IPO is suitable. Most likely allocation to manager would be based on client base or some such number - and if that happened first - the distribution would end up being inequitable.