ETHICS ques

CFA Level I Ethics
#1

I am doing practice question and got stuck at this

David Bravoria, CFA, is an independent financial advisor for a high net worth client with whom he had not had contact in over two years. During a recent brief telephone conversation, the client states he wants to increase his risk exposure. Bravoria subsequently recommends and invests in several high-risk funds on behalf of the client. Bravoria continues, as he has done in the past, to send to his client monthly, detailed itemized investment statements. Did Bravoria most likely violate any CFA Standards?

  1. No.
  2. Yes, with regard to investment statements.
  3. Yes, with regard to purchasing venture capital funds.

Answer = C

My explanation is he should have first updated investment policy statement since its a major change, before buying more risky venture capital funds.

Am I right?

#2

investment statement and investment policy statement are different. The paragraph does not mention anything of an IPS. He is correct for sending his monthly “investment” statement but incorrect for not asking him if anything has changed since they last spoke, which is why a risky asset such as VC funds wouldn’t be the best course of action.