In Mbuwanga's promotion of Kenyan REITs without tailoring to individual client objectives, which CFA Institute Standard is most likely violated?

• A. Standard I(A) Knowledge of the Law
• B. Standard IV(C) Responsibilities of Supervisors
• C. Standard V(A) Diligence and Reasonable Basis
• D. Standard III(C) Suitability

Answer: (D)

Suitability centers on matching investment recommendations to each client’s objectives, constraints, and risk tolerance. If Mbuwanga is promoting Kenyan REITs without assessing or tailoring to individual client needs, he isn’t ensuring that the recommended investment fits the client’s time horizon, liquidity requirements, tax considerations, or risk profile. That gap means the recommendation could be inappropriate for many clients, which violates the duty to provide suitable investment advice.

While other standards touch related ideas, they aren’t about tailoring recommendations to a client’s objectives in the same way. Knowledge of the Law covers compliance with laws and regulations, not the specific fit of an investment to a client’s circumstances. Responsibilities of Supervisors concern oversight and ensuring adherence by others. Diligence and Reasonable Basis requires that an investment idea be supported by adequate analysis, but the core issue here is the lack of tailoring to the client, which is the heart of suitability.