You have just been employed as the CFA Institute compliance officer for your firm. The firm, which operates in the financial services area and employs a number of CFA members who are both full Charterholders and others, just like you, currently studying the CFA Program.

Required:

Why are the issues of 'guarantees' an important issue for consideration in the interactions between the adviser and the client, particularly in relation to CFA Standard 1 (C)? Briefly justify your conclusions.

Hint: That is, why does the adviser need to be wary of the manner in which they express expected future investment returns to clients, particularly in relation to any guaranteed returns?