- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 3. Guidance for Standards I-VII
- Subject 18. Standard VI (A) Disclosure of Conflicts
CFA Practice Question
In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard VI (A) Disclosure of Conflicts, which of the following ways is (are) (an) effective method(s) for member compliance?
II. Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.
III. When in doubt if a situation represents a conflict, it should be discussed with the compliance officer or supervisor.
I. Members should report any beneficial interest that they may have in securities to their employers.
II. Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.
III. When in doubt if a situation represents a conflict, it should be discussed with the compliance officer or supervisor.
Correct Answer: I, II and III
User Contributed Comments 6
| User | Comment |
|---|---|
| Nancie | (I): should report all interests even if the employer doesn't require that? |
| SueLiu | Even if the employer doesn't require it, the Code does, so a member/candidate must go by that rule. |
| Khadria | "I" may not be correct because having beneficial interest in securities with which employer has nothing to do, doesn't enforce their disclosure to the emplyer. ONLY IF IT MAY CAUSE CONFLICT. |
| nike | they should report all securities as sometimes employees are not in the best position to make such a judgment (beneficial interest exists or not). |
| Farina | That's a really good point Nike... |
| NikolaZ | Rule of thumb, use the stricter rule. Gotta love that thumb. |