Brown manages investments for 260 individuals and families. When his largest investors petition him to include a 3.5% to 6% callocation of non-investment-grade bonds in their portfolios, he decides he needs additional help to meet the request. He

Brown manages investments for 260 individuals and families. When his largest investors petition him to include a \( 3.5 \% \) to \( 6 \% \)callocation of non-investment-grade bonds in their portfolios, he decides he needs additional help to meet the request. He considers various independent advisors to use as submanagers, but determines that the most qualified advisors would be too expensive. Reasoning that a lower-cost provider would enable him to pass the savings along to his clients, he chooses that provider to invest the new bond allocation. Brown has violated: A) Standard III(C) Suitability by failing to consider the appropriateness of the non-investment- B) Standard V(A) Diligence and Reasonable Basis by letting fee structure determine the selection of the submanager. C) Both Standard III(C) Suitability and Standard V(A) Diligence and Reasonable Basis.\( \)
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