- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 18. Standard VI (A) Disclosure of Conflicts
CFA Practice Question
Jose is an independent contractor who writes research reports for several investment publications. He refuses to sign contracts with exclusivity clauses. Jose sometimes revises work he submits to one publication and sends slightly altered versions of the report to additional publications. Does Jose violate any CFA Institute Standards?
A. No
B. Yes, with respect to Loyalty.
C. Yes, with respect to Disclosure of Conflicts.
Explanation: A member's duties within an independent contractor relationship are governed by the oral or written agreement between the member and the client. Members should take care to define clearly the scope of the responsibilities and the expectations of each client within the context of each relationship. Members have a duty to abide by the terms of the agreement.
User Contributed Comments 2
| User | Comment |
|---|---|
| xemex131 | So its ok to be an independent contractor and give BUY rating to a stock for which I have a significant position in my portfolio? |
| xemex131 | I mean without disclosing the fact.. |