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Basic Question 1 of 9

A breach of fiduciary duty occurs if the insider personally benefits from a disclosure. Benefits can be ______.

I. pecuniary or reputational
II. a gift of information to others
III. through a quid pro quo relationship

User Contributed Comments 9

User Comment
kalps Indriect or direct benefit - all benefits count
rethan What is a quid pro quo relationship?i.e what does it mean?
Drzewes it's latin for "something for something"
AUAU What meanings for "pecuniary or reputational?
giroth Pecuniary = monetary or money based reward
reputational = benefit to how people view you
apiccion quid pro quo = "I scratch your back, you scratch mine"

Many business relationships are quid pro quo. One party does a favor with the expectation that the other party will do some unspecified favour in the future.
Eshe i dont understand the question at all.Can someone please explain to me?
sshetty2 I think this should say personally benefits from non-disclosure...
sshetty2 a breach of fiduciary duty occurs if the insider personally benefits from non-disclosure of the below mentioned potential business ties ie a pecuniary/reputational arrarangement, a gift of information to others and/or through a quid pro quo relationship with a brokerage/third party that handles operations on the back end (usually research or trade) and gets paid "soft dollars" for these services..
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
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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.