CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Lee Martin, CFA, was driving to a client's office, where he was expected to close a multi-million dollar deal, when he was pulled over by a traffic policeman. When Martin realized that the policeman planned to wrongly ticket him for speeding, he offered to buy him "lunch" so that he could quickly get to his client's office. The alternative was to go to the police station and file a complaint for being wrongly accused (which would also involve going to court the next day to present his case). The lunch would cost significantly more than the ticket. Did Martin violate the CFA Code of Ethics?
A. Yes
B. No, because he was wrongly accused.
C. No, because the cost of lunch was more than the ticket.
Explanation: Martin was effectively trying to bribe the policeman so that he would not issue a speeding ticket. This action violates the Code of Ethics. Though he feels that he was wrongly accused, this was only his opinion; it may not have been based in fact or stand up in a court of law. Martin has a responsibility to follow the law and act with integrity in an ethical manner.

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