Explanation : The Standards related to III(A) Loyalty, Prudence, and Care and III(C)
Suitability are violated. The IPS mentions low risk securities, and
describes the asset classes. Therefore investment in the pharma stock
may not be suitable for this portfolio.
Explanation : Sharon disclosed his travel and accommodation arrangements to his
employer and had only accepted them after being given permission by
his firm. His actions on return do not cause conflicts of interest between
his company and ABC, because he makes a full disclosure of his dinner
with the CFO to his employer.