- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 71. Guidance for Standards I-VII
- Subject 4. Standard I (D) Misconduct
CFA Practice Question
In terms of Standards of Professional Conduct when dealing with the procedures for compliance per Standard I (D): Misconduct, which of the following is NOT an effective method for member compliance? Members should encourage their employees to ______.
A. conduct background checks on all employees to ensure that they are of the required quality
B. have a few drinks when entertaining clients
C. take notes that personal misbehavior will not be tolerated
Explanation: The other choices ARE good compliance procedures. B is not a good compliance procedure as encouraging members to drink while entertaining clients encourages bad behavior.
User Contributed Comments 6
| User | Comment |
|---|---|
| BryanKec | medium question??? is only the exam was like this i'd be golden. |
| bvides | I dont get it!! Why cant we have drinks? |
| maria15 | We can have drinks. But the key word to the question is "encourage." |
| sevywonder | "Listen, man, let's just close the damn deal. There's another round of tequila shots waiting for us in the MD's office." |
| sunday128 | Sevywonder #Reality |
| nmech1984 | NOT an effective method guys. |