Timothy Hooper, CFA, is a security analyst at an investment firm. In his spare time, Hooper serves as a volunteer for City Pride, which collects clothes for the homeless. Hooper has occasionally given some of the clothes to his friends or sold the clothes instead of returning all of the clothing to City Pride. City Pride discovers what he has been doing and dismisses him. Later, City Pride learns that other volunteer organizations have dismissed Hooper for similar actions. Has Hooper violated Standard I(D) on professional misconduct in the CFA Institute Standards of Professional Conduct?

A) No, because Hooper's conduct is unrelated to his professional activities as a security analyst.

B) Yes.

C) No, because Hooper volunteers his services to City Pride.

A CFA charterholder who comes to work intoxicated is:

A) in violation of Standard IV(A) concerning duties to employer.

B) in violation of Standard I(D) concerning professional misconduct.

C) not in violation of the standards.

All of the following are violations of Standard I(D), Misconduct, EXCEPT:

A) conviction of a crime involving fraud.

B) any conduct that undermines confidence that the CFA charter represents a level of achievement based on merit and ethical conduct.

C) conviction of a misdemeanor involving civil disobedience in support of one’s personal beliefs.

An analyst belongs to a nationally recognized charitable organization, which requires dues for membership. The analyst has worked out a deal under which he provides money management advice in lieu of paying dues. While performing services for the organization, the analyst discovers some useful computer programs that his predecessor developed and left as the property of the organization. The analyst decides to use the computer programs in his consulting business. This action is:

A) appropriate since the analyst is technically an employee of the organization.

B) a violation of Standard III(B) concerning fair dealing.

C) a violation of Standard I(D) concerning misconduct.

Which of the following does NOT violate Standard I(D), Misconduct? Roland Lawson, a financial analyst:

A) committed perjury in connection with a lawsuit against his firm.

B) is arrested for participating in a nonviolent protest.

C) drinks excessively during business meetings with clients and returns to work under the influence of alcohol.

Nancy Hall, a candidate in the CFA program, is an analyst for a mutual fund. As part of her job she makes company visits to interview executives. On a recent trip she stayed with her sister instead of at a hotel. In her expenses Hall included a hotel charge of $100, which was less than the amount allowed by her employer. After receiving a check for her expenses, Hall disclosed to her supervisor that she had stayed with her sister instead of at a hotel. She also returned the $100 to her employer. According to CFA Institute Standards of Professional Conduct, which of the following statements best describes Hall's professional conduct?

A) Hall did not engage in professional misconduct because she eventually disclosed this information and returned the $100 to her employer.

B) Hall did not engage in professional misconduct because she did not meet all of the requirements to use the CFA designation.

C) Hall engaged in professional misconduct.

Hillary Jones, CFA, sometimes promises clients that she will allocate more shares from oversubscribed initial public offerings (IPOs) than she knows she will actually be able to deliver. Her employer has reprimanded her in the past for similar behavior. Which of the following statements is least accurate regarding Jones' behavior?

A) Her actions are a violation of the standard concerning misrepresentation, because she promised something she knew the firm could not deliver.

B) Her actions are a violation of the Standards only if prosecution results in a felony conviction.

C) Her actions are a violation of the standard concerning professional misconduct because she deceived her clients.

An investment advisor takes a trip for which his firm will pay the expenses. Upon his return he alters some of the numbers on restaurant receipts to inflate the expenses by $64. Is this a violation of Standard I(D)?

A) Yes, because it reflects adversely on the charterholder’s professional reputation.

B) No, if such a crime carries less than a one-year prison term.

C) Yes, because the amount involved is over $50.