update

问题如下：

Dennis Kim, a CFA charterholder at Century Growth Partners (CGP), oversees Amelia Frost's investment account. Frost instructs Kim to allocate one percent of her portfolio to biotech stocks. Despite believing this allocation contradicts Frost's existing investment policy statement, CGP lacks a specific protocol for handling unsolicited trade requests. After discussing his reservations with Frost, who remains firm on her decision, Kim proceeds with the investment without revising the investment policy statement. Did Kim breach any professional standards?

选项：

A.No

B.Yes, due to Kim carrying out an inappropriate investment for Frost

C.Yes, for not updating Frost's investment policy statement prior to the investment

解释：

Option A is correct. The rationale includes: (1) Kim communicated his concerns to Frost prior to the trade, (2) Frost understood and accepted the risks, (3) Kim's firm has no policy against executing trades deemed unsuitable, and (4) the small scale of the request (one percent) negates the need to modify the investment policy statement. Under Standard III(C), Suitability, members can execute trades they deem unsuitable if they have discussed the risks with the client, and the client acknowledges and accepts these risks. Additionally, if the unsolicited request is not materially impactful to the portfolio, updating the investment policy statement isn't mandatory. Option B is incorrect, as members may execute unsuitable trades under certain conditions that Kim has met. Option C is incorrect, as Kim is not obliged to alter the IPS for an immaterial trade, according to Standard III(C), Suitability.