CFA Practice Question

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CFA Practice Question

In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard VI (A) Disclosure of Conflicts, which of the following ways is (are) (an) effective method(s) for member compliance?

I. Members should report any beneficial interest that they may have in securities to their employers.
II. 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.
III. When in doubt if a situation represents a conflict, it should be discussed with the compliance officer or supervisor.
Correct Answer: I, II and III

User Contributed Comments 6

User Comment
Nancie (I): should report all interests even if the employer doesn't require that?
SueLiu Even if the employer doesn't require it, the Code does, so a member/candidate must go by that rule.
Khadria "I" may not be correct because having beneficial interest in securities with which employer has nothing to do, doesn't enforce their disclosure to the emplyer.

nike they should report all securities as sometimes employees are not in the best position to make such a judgment (beneficial interest exists or not).
Farina That's a really good point Nike...
NikolaZ Rule of thumb, use the stricter rule. Gotta love that thumb.
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