- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 1. Standard I (A) Knowledge of the Law
CFA Practice Question
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.
Correct Answer: C
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 |