Can someone please explain this answer?
When a firm seeks to allocate a disproportionate number of shares of a hot IPO to performance-based fee accounts this constitutes a violation of the Standard concerning:
A)
priority of transactions.
B)
fiduciary duty.
C)
additional compensation arrangements.
Explanation
The allocation of a disproportionate number of shares to performance-based fee accounts constitutes a violation of fiduciary duty, in addition to being a violation of the Standard concerning fair dealing.