According to professional standards, what is a primary violation that members must avoid?

Misrepresentation of facts is a primary violation that members must avoid because it undermines trust and credibility in the investment profession. This type of violation involves intentionally providing false or misleading information to clients, stakeholders, or the public. Adhering to truthful and accurate communication is essential in maintaining professional integrity and protecting clients' interests.

The expectation is that investment professionals present information honestly, enabling clients and investors to make informed decisions. Any misrepresentation not only damages professional relationships but can also lead to significant regulatory repercussions and loss of reputation.

While other actions such as insider trading, failure to disclose fees, and providing unsolicited advice are also considered unethical and could lead to violations of professional standards, the misrepresentation of facts is particularly damaging as it can fundamentally mislead clients and investors, leading to poor decision-making based on false premises.