CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Josh is an investment banker in a country with strict confidentiality laws. He is working on an acquisition for ABC Mining Co. While performing due diligence, Josh notices that ABC has a number of questionable offshore partnerships. He investigates the legality of the partnerships and finds evidence of illegal activity. According to the Standards of Professional Conduct, Josh's best course of action would be to ______.
A. alert CFA Institute
B. consult outside counsel
C. notify regulatory authorities
Explanation: Members must keep client information confidential and must comply with applicable law. If applicable law requires disclosure of client information in certain circumstances, members and candidates must comply with the law. If applicable law requires members to maintain confidentiality, even if the information concerns illegal activities on the part of the client, members should not disclose such information. Josh's best course of action would be to consult with outside counsel to determine applicable law.

User Contributed Comments 0

You need to log in first to add your comment.