Lilly Marlow is an elderly widow with a moderate risk tolerance who depends on her investment portfolio to meet her living expenses. Marcus Pate, CFA, has been her investment adviser for years and has always managed Marlow's account to her satisfaction. Pate has a lunch meeting with Marlow quarterly and has always used their discussions as a basis for selecting investments for her account, over which he has full discretion to set the investment strategies. Pate often invests in risky derivative strategies to increase the return on Marlow's account. As Marlow's son is reviewing her recent year-end statement, he is shocked to discover that Pate has invested a significant amount of the account's assets in currency derivatives. According to the CFA Institute Standards, Pate is:

A.In violation of the Standard concerning suitability.

B.In violation of the Standard on communication with clients and prospective clients.

C.Not in violation of any Standard because Marlow has been satisfied with the portfolio performance to date.