CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

According to the standards, a member who is an investment manager is most likely to breach his duty to clients by ______.
A. disclosing potential conflicts of interest
B. habitually voting with management on proxies that relate to non-routine governance issues
C. disclosing confidential client information to the CFA Institute Professional Conduct Program
Explanation: Fiduciaries who vote blindly with management on non-routine governance issues may breach their duty to clients by violating the standard that relates to Loyalty, Prudence, and Care.

User Contributed Comments 4

User Comment
Benn09 So here is it a "most" right situation?? I understand that B is clearly right, but isn't C right too? I didn't think that the CFA Institute was someone you would disclose that information to. I thought you could only disclose it in legal situations?
katebako 'Fiduciaries who vote blindly with management on non-routine governance issue MAY breach their duty to clients'; yet, sharing confidential client information IS a breach. If there was stipulation of legal implications as Benn09 mentioned, I could understand. No mention makes this question difficult to reason.
tonymenza Process of elimination suggests B, but voting habitually does not necessarily suggest that they are voting blindly...
ChirsMitch @Benn09 you would be voting proxies a lot more than you would be corresponding with the CFAI throughout your ongoing career. Making it more likely to happen that way.
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