CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

According to CFA Institute's Standards of Professional Conduct, the following is procedure for compliance for one of the Standards of Professional Conduct.

Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.

Which Standard of Professional Conduct do these compliance procedures relate to?
A. Standard IV (B) Duties to Employers - Additional Compensation Arrangements
B. Standard I (A) Professionalism - Independence and Objectivity
C. Standard VI (A) Conflicts of Interest - Disclosure of conflicts

User Contributed Comments 3

User Comment
olesya report any beneficial interest - disclosure of conflicts
Vibis I thought it was about additional compensation arrangements, which, as a result, create conglict of interests, bu I was wrong.
The AddCompArrangement Standard states:
"Members should make an immediate written report to their employer specifying any compensation they receive or propose to receive for services in addition to compensation or benefits received from their primary employer." So it's about direct compensation and its immediate disclosure.

The Disclosure of conflicts standard is about situations, where conflicts of interests could be reasonable assumed:

"Members and candidates should:
? Disclose to their employer all matters, such as beneficial interest (ownership of securities), corporate directorships, trusteeships and any special relationships, that reasonably could be expected to interfere with their duty to their employer or abilities to make unbiased and objective recommendations;"
ashish100 ^ can't believe this guy spent all that time writing when the answer is so damn obvious.
I know things can get tricky but it literally says "relationships that could pose a conflict of interest"
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