CFA Practice Question
Which of the following statements clearly conflicts with the recommended procedures for compliance presented in the Standards of Practice Handbook?
A. Investment recommendations may be changed by an analyst without prior approval of a supervisory analyst.
B. Prior approval must be obtained for the personal investment transactions of all employees.
C. For confidentiality reasons, personal transactions should not be compared with those of clients or the employer unless requested by regulatory organizations.
Explanation: This question deals with the compliance procedures relating to personal investments of members. Employees should compare personal transactions of employees with those of clients on a regular basis,
regardless of the existence of a regulatory organization. Such comparisons ensure that members' personal trades do not conflict with their duty to their clients. All the other statements do not conflict with the procedures in the Handbook.
User Contributed Comments 9
| User | Comment |
|---|---|
| soukhov | this test was just like hell for me, brain is going to blow up |
| MaresaJaden | Me too soukhov... me too... |
| dipu617 | I chose "A" and still don't understand why it's not the correct answer!!!!! I think passing this exam is - 50% luck and 50% knowledge.... |
| Mikehuynh | My mind is blur now |
| mary11 | I don't get it - I have 51% of the questions right and my ranking is 14%... |
| ShanikaJ | I got 71 questions right out of 120. |
| asalonga7 | ranking is based on all the people who took this test - its a percentile ranking. |
| Cain621 | I got 66 (highest yet). Anyone one have an idea what the benchmark is? |
| longnh9 | Benchmark base on the result of all the members take the same exams on analystnotes, I guess. |