Standard I ©: “An Investment Manager may not allocate a Client’s Brokerage based on the amount of Client referrals the Investment Manager receives from a Broker”.
Could someone help provide an example to illustrate what this means?
Also, the clarification of this standard said: “With respect to mutual funds, the Investment Manager’s Client is the fund. However, in this context, the fund’s board, not the fund establishes the policies with respect to the use of certain brokers.”
How is this clarification related to standard I? An example to illustrate the significance of this clarification would be helpful.
Thanks a lot!