CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Tyler Lepire, CFA, is an independent research analyst providing equity research on companies listed on exchanges in emerging markets. He often incorporates statistical data obtained from the web sites of the World Bank and the central banks of various countries into the body of his research reports. While not indicated within the reports, whenever his clients ask where he gets his information, he informs them that the information is in the public domain, so he doesn't keep his own records. When the clients ask for the specific web site addresses, he provides the information. Which Standard has Lepire most likely violated?
A. Misconduct
B. Record Retention
C. Misrepresentation
Explanation: Lepire has plagiarized the information he obtained from the websites of the World Bank and the various central banks by not quoting the sources within the research reports. This is a violation of Standard I - Professionalism (C) Misrepresentation.

User Contributed Comments 16

User Comment
ChrisCat Are these not "recognized statistical agencies"?
alexchav ChrisCat: Misrepresentation refers to not citing the specific sources!
alles I thought these kind of sources didn't need to be cited.
farhan92 I got this wrong... "incorporates this research in the body of his research reports" i guess this would mean it could give the impression he has carried out the research.
ascruggs92 While central bank info is a probably a recognized statistical agency, he cannot take their research and claim it as his own. If he were simply quoting interest rates or some other input that is easily accessible without using their research, he wouldn't have to disclose the source. However, if it includes research conducted by personnel at the central bank that he or someone else couldn't have gotten without the central banks reports, he needs to disclose it.
epfrndz I answered B, its risky if you don't backup the data sources. People with misguided intentions could alter data later on and when you don't have a backup, your research could fall apart.

I'm pretty sure that a central bank is a recognized source of information. And I found it weird that disclosure of sources, if the source was a reputable institution, was optional. So i didn't think it was C. (As stated in the notes to the LOS)

But i should have stuck with the gut feel all along.
katebako "Crediting the source is not required when using projections, statistics, and tables from recognized financial and statistical reporting services". So why does the source need to be credited if he "incorporates STATISTICAL data obtained from the websites of the WORLD BANK" ?? There is no mention of claiming the work to be his own, nor mention of incorporating anything beyond statistical measures..
gfenney Agreed with the above - clearly B is the correct answer
rohan36 I think World Bank is a public source and according to the guidelines mentioned in Standard I(C) Misrepresentation A member or candidate can use information from public sources without giving due credit...Since he has not mentioned proper records B should be the correct answer...
msouthee can admin please confirm the correct answer
carlo_it it include research done by the central bank so you need do cite the sourcee
guest B) Record Retention would be a right answer from a general sense, but C) Misrepresentation is a more specific answer to this question as it relates to plagiarism.
willkins Normally, it's not an obligation to mention source of data from recognized agencies. But not for the chart.
vidhidave B should be correct answer. As per misrepresentation law, one does not have obligation to cite the source of information if the source is a recognised website !!!
Swoods2 Agree with katebako. Moreover question states that he volunteers the fact that it isn't his own original research. Not misrepresentation.
Harneet07 In another question, the solution stated that citing the source for the Wall Street Journal isn't required because it is factual public information... I don't understand how that same criterion is now not applicable.
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