CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

A breach of fiduciary duty occurs if the insider personally benefits from a disclosure. Benefits can be ______.

I. pecuniary or reputational
II. a gift of information to others
III. through a quid pro quo relationship
Correct Answer: I, II and III

User Contributed Comments 9

User Comment
kalps Indriect or direct benefit - all benefits count
rethan What is a quid pro quo relationship?i.e what does it mean?
Drzewes it's latin for "something for something"
AUAU What meanings for "pecuniary or reputational?
giroth Pecuniary = monetary or money based reward
reputational = benefit to how people view you
apiccion quid pro quo = "I scratch your back, you scratch mine"

Many business relationships are quid pro quo. One party does a favor with the expectation that the other party will do some unspecified favour in the future.
Eshe i dont understand the question at all.Can someone please explain to me?
sshetty2 I think this should say personally benefits from non-disclosure...
sshetty2 a breach of fiduciary duty occurs if the insider personally benefits from non-disclosure of the below mentioned potential business ties ie a pecuniary/reputational arrarangement, a gift of information to others and/or through a quid pro quo relationship with a brokerage/third party that handles operations on the back end (usually research or trade) and gets paid "soft dollars" for these services..
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