- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 18. Standard VI (A) Disclosure of Conflicts
CFA Practice Question
Bob Ryan, CFA, is an analyst with a large insurance company. His personal portfolio includes a significant investment in the common stock of QRS Company, which his firm does not now follow. The director of the insurance company's research department asks Ryan to analyze QRS and write a report about its investment potential. Based on CFA Institute's Standards of Professional Conduct, Ryan should ______.
A. decline to write the report without the specific approval of his supervisor
B. sell his shares of QRS before completing the report
C. disclose the ownership of the stock to his employer and in the report
User Contributed Comments 2
| User | Comment |
|---|---|
| analystz | But his firm does not know that he holds the investment: would it be right for his firm to find out from the published report? Shouldn't he inform before-hand? |
| LoCo83 | @analystz: Agreed - shouldn't someone impartial determine/approve the objectivity and independence of the report BEFORE the report is written? Also, would argue disclosure in this scenario would then imply independence and objectivity when it does not in reality, no? |