CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Jamie Smith works for AMC Brokerage. He is in the process of releasing a research report on an advertising company called PLW. He recommends that his clients buy shares. Which of the following statements is not likely to result in a conflict or possible conflict situation?
A. Jamie's mother has a material shareholding in PLW.
B. Jamie plays soccer with the marketing director of PLW once a month.
C. Jamie is a personal friend of the CEO of PLW.
Explanation: A member must disclose all his interests and possible conflicts to his clients and prospective clients. This would include:
  • material share ownership
  • market-making activities
  • corporate finance relationships
  • directorships
Jamie's mother, with her large shareholding, will be included, as this could lead to a possible conflict. The fact that Jamie plays soccer with the marketing director of PLW once a month is unlikely to result in a conflict of interest.

User Contributed Comments 4

User Comment
far1080 The problem with marketing is it is full of marketing people
ChrisYung88 Why isn't Choice C consider a Conflict? He is friends with the CEO of the company...
swt326 Choice C is considered a conflict, the question is asking what's NOT considered a conflict
farhan92 this took me about 35 seconds longer than it should have done...
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