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Basic Question 7 of 7
The Standards clearly prohibit trading for yourself in advance of your clients. You are working in a country where this is common practice and is not illegal.
B. The Standards allow this practice only if approved by a supervisor.
C. The Standards take precedence over local practice and prohibit you from such trading.
A. The Standards allow you to follow local practices if they are not illegal.
B. The Standards allow this practice only if approved by a supervisor.
C. The Standards take precedence over local practice and prohibit you from such trading.
User Contributed Comments 10
| User | Comment |
|---|---|
| Haiqing | the standards prohibit, then prohibit.... |
| katybo | rule of thumb |
| kaliokale | easy one |
| sarath | Thanks god ...at least one easy one... |
| ebere | I am satisfied that I located this site. |
| rufi | this is very good for IBs doing business in low tier nations |
| TammTamm | Makes sense. |
| bantoo | It is not that easy as B also seems a good choice. However, if law of nation allows this then there is no need to disclose to supervisor. So C is correct answer |
| StephanieG | Remember the order of precedence- Client, Employer then you in terms of interests being served. |
| SAYAN12 | AGREE WITH ebere |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2024 Level I Curriculum, Volume 6, Module 3.