CFA Practice Question

There are 361 practice questions for this study session.

To prevent situations from arising that could be perceived as influencing your independence, you should follow the following policies:

A. Beneficiaries of a pension fund are an analyst's primary responsibility, not the fund sponsors.
B. Do not engage in conduct involving dishonesty, fraud, deceit, and misrepresentations.
C. Limit gifts, pay your own travel costs, and disclose all special corporate relationships.
Correct Answer: C

User Contributed Comments 10

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isida

shouldn't the answer be all choices???

LogicMan

No since A and B are not related.

sharon

It's about INDEPENDENCE.

0is4eva

Tricky question. Every line in the question must be read carefully. Key word: "...influencing your independence...".

Standard II B: "...use reasonable care... maintain independence... ...not offer, solicit, accept any gift, benefit... could be expected to compromise... independence and objectivity."

The answers listed in A and B are not related to the "independence concept" and are therefore not eligible.

lilbut

so where does a and b fall under?

CFAMarco

A under duties to clients and B under profesionalism. I think.

copus

tricky question...I also thought that all three were correct but upon closer reading, I realized that I had flubbed it big time!

bantoo

Read the code Ib.A is not related to question and option b is Id. so C is the correct answer

sshetty2

key words here i think is Best Course of action. If you have the option to pay for it yourself that would likely be the most ethical way of completing the valuation

DrewEB86

Doesn't the standard stipulate you shouldn't be accepting gifts? This says LIMIT gifts? That's what threw me...