- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 10. Standard III (D) Performance Presentation
CFA Practice Question
In order to claim compliance with the Standards of Professional Conduct per Standard III (D) Performance Presentation, the following compliance officers, as detailed below, make comments about their compliance.
II. John states, "Our firm complies in all respects with CFA Institute's standards."
III. Janet states, "Our firm complies in all material respects with CFA Institute's standards."
Which of the below-mentioned compliance officers are in fact in compliance with this Standard?
I. Len states, "Our firm complies in most respects with CFA Institute's standards."
II. John states, "Our firm complies in all respects with CFA Institute's standards."
III. Janet states, "Our firm complies in all material respects with CFA Institute's standards."
Correct Answer: II and III only
Len cannot claim to be in compliance with this standard just because in most respects he complies. In order to claim compliance, Len would need to comply in all material respects to CFA Institute's standards.
User Contributed Comments 12
| User | Comment |
|---|---|
| Khadria | What is the difference between "in all respects" and "in all material respects"? If they are different then, both of them CAN NOT BE CORRECT ! ! ! |
| addi | there is no difference so both are correct. |
| Challs | in all respects and in all material respects are one and the same....consider all of the CFA standards to be material and you'll get it |
| TammTamm | WOW, this was tricky. I thought each firm had to comply in all respects not just material. I will have to remember this for the test. |
| wulin | "In all respects" INCLUDES "in all material respects". |
| AUAU | "In all respects" is perfect, ideal but impractical. "In all material respects" is practical but hard to defined!!!!! Both are correct! |
| wtwaf | great question. |
| NikolaZ | @wulin: if all respects includes in all material respects, then the answer would be in all respects, since by selecting all material respects you would not be encompassing all respects - in this question, all respects is equivalent to all material respects Challs had it right |
| raffrobb | addi's comment makes it clear to me. |
| eddington | Could it be that there are some instances when there is a part of the standards which is not material to the situation in question such that failure to comply with that particular standard would not be considered a breach? |
| marianne1 | In all respect and in all material respect means the same |
| sshetty2 | They don't mean exactly the same... obviously compliance in all material respects to CFA standards does NOT include non-material aspects and so this restriction is slightly looser of a statement than saying 'all respects'. However, per the CFA guidelines, in order to claim compliance, you need only be compliant with with respect to 'all material aspects of the standard' apparently |