CFA Practice Question

CFA Practice Question

Under what conditions is Standard I (D) - Misconduct violated?

I. The member is convicted of a misdemeanor.
II. The member regularly engages in unprofessional but legal behavior.
III. The member engages in dishonest activities that do not result in criminal conviction.
IV. The member is convicted of a felony.
A. II, III and IV
B. I, II and IV
C. I, II, III and IV
Explanation: A misdemeanor conviction is only considered grounds for a violation of Standard I (D) if it occurs repeatedly or involves "moral turpitude" (lying, cheating, stealing, or other dishonest conduct). Unprofessional and dishonest behavior or a felony conviction are violations of Standard I (D).

User Contributed Comments 9

User Comment
lwang014 a tricky question
lemec however, repeated misdemeanors are in violation
danlan Frequency of misdemeanor is the key
Mago yeah, it is tricky!
steved333 Nature of misdemeanor is also important. Getting caught outside of work with a dimebag of pot isn't going to be considered a violation. Although, if you are repeatedly caught, you aren't doing your duty to bring honor to those who hold the charter, which would violate the standard.
On the other hand, even one misdemeanor involving theft or the like will be a violation without question.
heli I am not sure if the frequency of misdemeanors is key. The CFA book provides an example (page 36; volume 1) saying that a portfolio manager was arrested several times and that seemed okay. In my opinion, the key is if the misdemeanor raises questions about your professionalism and competence.
Lambo83 Getting a police caution for speeding or being on your phone whilst driving is an example of a misdemeanor that doesn't reflect adversely on one's character and professional conduct. And any misdemeanor involving lying, stealing, being deceptive will more than likely be a felony. But yes repeated misdemeanors will start to question a person's integrity etc
xe077 How will i know the meaning of Misdemeanors :-P
will080912 As a non-English speaker, that word was really hard haha
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