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Basic Question 3 of 5
Which of the following is not a specific element relating to standard "diligence and reasonable basis"?
II. maintaining appropriate records
III. avoiding material misrepresentation
IV. diligence and thoroughness in recommendations
I. fiduciary duty
II. maintaining appropriate records
III. avoiding material misrepresentation
IV. diligence and thoroughness in recommendations
User Contributed Comments 7
| User | Comment |
|---|---|
| kalps | Fiduciary duty does not relate to investments - t is more of a duty as a director etc so you have a fiduciary duty to shareholders again this is noot necessarily to maximise profits but to ensure that they are treated equally and fairly |
| danlan2 | In the note, it's saying "diligence must be exercised to avoid any material misrepresentation". |
| krisscfa | 'Fiduciary duty' belongs to Standard III-A(Loyalty,Prudence, and Care) |
| danrow | I think that there is an overlap between this standard and Standard III A. When you are not exercise prudence and care, you do not apply reasonable basis. Someone who cares about his/her and is prudent would base their decisions on strong analysis. |
| wundac | Fiduciary duty is Loyalty and fairness to C and PC |
| justbassbaby | II-maintain appropriate records should be under record retention, not diligence and reasonable basis |
| NikolaZ | Maintaining appropriate records ensures that you are diligent and reasonable in your decision making. Think of appropriate records as supportive evidence to your research that comprises your diligent and reasonable basis and the question should become clear. |
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Andrea Schildbach
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.