- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 4. Standard I (D) Misconduct
CFA Practice Question
A CFA Candidate purchased a copyrighted CFA exam preparatory study guide from a publisher. Two weeks prior to the exam, the Candidate lost the study guide, so he photocopied a copy that his friend had purchased. According to the Standards of Practice Handbook, did the CFA Candidate most likely violate the CFA Institute Standards of Professional Conduct?
B. No, because he had purchased his own copy.
C. No, because both had purchased their own copies.
A. Yes
B. No, because he had purchased his own copy.
C. No, because both had purchased their own copies.
Correct Answer: A
The Candidate violated Standard I (A)-Knowledge of the Law and Standard I (D)-Misconduct. By photocopying copyrighted material without the permission of the author and publisher, the Candidate violated copyright law and effectively stole the intellectual property of the author and publisher (hence acting dishonestly).
User Contributed Comments 4
| User | Comment |
|---|---|
| msk500 | I got this wrong for a silly reason. I should have noted the word 'copyright' |
| Jia612 | copy write law? Does this violate the standard I-C as well since it's a misrepresentation. |
| Hermalia | @Jia612: I don' t think this a misrepresentation since no one is claiming the work as their own. |
| tgig | To my knowledge, personal use of a copy of legitimately purchased content is not a violation of copyright law. For example, in the old days when people had music CD's, they were allowed to copy the songs for their personal use, but broke the law if they shared that content with somebody else. I believe that C is correct because both parties lawfully purchased the material, and the copy was only being used for personal use. |