CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard IV (A) Loyalty, which of the following are activities that might constitute a violation of the duty to the employer?

I. misappropriation of trade secrets
II. conspiracy to bring about the resignation of other employees
III. misuse of confidential information
IV. misappropriation of client lists
A. I, II and III
B. II, III and IV
C. All of the above

User Contributed Comments 6

User Comment
melmilesxx what is misappropriation of trade secrets exactly??
CFAMarco A example of trade secret could be, an special work sheet or valuation material that was developed only for that company
dimanyc i thought that misuse of confid info relates to dealing with clients, not employers...
ThePessimist The employer can have confidential information too: lists of prospects, internal research reports, etc.
Gooner7 I think choice II falls under misconduct as well: settling a personal vendetta. Thoughts?
ascruggs92 You a duty to your employer not to misuse any of his/her confidential info or his/her clients confidential info.

You have a duty to your employer not to do anything that will have a negative impact on the company, internally or externally (including trying to get someone else to quit).
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