Which statement best describes fair dealing and disclosure obligations when communicating with customers?

• A. Providing truthful, accurate information; avoiding omissions of material facts; and presenting information in a balanced manner
• B. Providing only favorable information to customers
• C. Disclosing all rumors about issuing entities
• D. Recommending only high-yield securities

Answer: (A)

Fair dealing and disclosure obligations require that when you communicate with customers you provide information that is truthful and accurate, you avoid omitting material facts, and you present the information in a balanced, non-biased way. This means you share a fair view of the investment, including both risks and benefits, rather than cherry-picking positives or pushing a particular outcome. Communicating only favorable information or relaying rumors would undermine accuracy and completeness, while recommending only high-yield securities ignores risk and suitability. The emphasis is on delivering a complete, honest picture based on known facts.