Clifford Roach is a portfolio manager for Ginger Investments. Historically Roach has been paid a…

Clifford Roach is a portfolio manager for Ginger Investments. Historically Roach has been paid a constant percentage of assets under management for his services; however, after a recent change in the compensation structure at Ginger, Roach is being compensated based on quarterly performance. Management at Ginger made this internal decision in order to better incentivize their managers to outperform for their clients. Consequently, Roach increases the risk of the portfolios that he manages. No disclosures of the change in compensation structure have been made to clients of Ginger. Roach has most likely:

Group of answer choices

Violated both Standard III(C): Suitability and Standard VI(A): Conflicts of Interest

Standard III(C): Suitability only

Standard VI(A): Conflicts of Interest only