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Basic Question 7 of 8
Which of the following statements is (are) NOT correct?
II. Several firms restrict their employees with regard to their investment freedom, and per this standard employees are obliged to adhere to those restrictions.
III. If a profit is made on a conflicted situation, the profit will always need to be repaid to the firm.
IV. All potential conflicts should be reported to the employer.
I. The mere appearance of a conflict may present a problem in terms of this standard.
II. Several firms restrict their employees with regard to their investment freedom, and per this standard employees are obliged to adhere to those restrictions.
III. If a profit is made on a conflicted situation, the profit will always need to be repaid to the firm.
IV. All potential conflicts should be reported to the employer.
User Contributed Comments 6
| User | Comment |
|---|---|
| cbb1 | Since this Standard is Responsibilites to the Employer, the Employer (the Firm) can decided whether the conflicted profit can be kept by the employee; this is NOT a conflict related to a client. |
| Khadria | "IV" may also not correct because "All potential conflicts" may not have been related to the employer and hence need not be disclosed to the employer. What about the disclosure to clients? Are there possibilities of the conflicts where only client needs to be informed? |
| ribi | conflicts here refer to conflicts of interests I guess, since this is for the Disclosure of Conflicts section. The textbook said so (all must be disclosed to the employer) |
| hannovanwyk | ALWAYS BE AWARE OF STRONG WORD USAGE LIKE "ALWAYS". :) |
| NikolaZ | To Khadria: All potential conflicts do need to be reported to the employer. Some of these conflicts will also need to be reported to the client. Reporting a conflict to a client, does not mean that this conflict need not be reported to the employer. |
| marianne1 | All .... nicht ganz klar |
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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.