Reading 2-VI: Standards of Professional Conduct & Guidance: Conflicts of Interest

LOS A.: Disclosure of Conflicts

1、An analyst is serving on the Board of Directors of a local publicly traded company. To avoid violating the CFA Institute Code and Standards, the analyst must disclose this to:

A)   only his employer.

B)   both his employer and his clients and prospective clients.

C)   only clients and prospective clients.

D)   no one since it should not cause a conflict of interest for the analyst.

The correct answer was B)

Serving on a Board of Directors should be disclosed to both the employer and clients and prospective clients.