Reading 2-VI: Standards of Professional Conduct & Guidance: Co

black

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

LOS A.: Disclosure of Conflicts

1、Bill Valley has been working for Advisors, Inc., for several years, and he just joined CFA Institute. Valley routinely writes research reports on Pharmaceutical firms. Valley has recently been asked to serve on the board of directors of an organization that promotes the search for a cure of a certain cancer. Serving on the board is an unpaid position without any direct benefits other than meeting new people and potential clients. To comply with Standard VI, Disclosure of Conflicts, Valley needs to:

A) only disclose the position on the board to his supervisor.

B) only discuss his activities on the board with the firm's compliance officer.

C) both disclose the position on the board to his supervisor and discuss his activities on the board.

D) do nothing.

The correct answer was C)

Valley could be affected by his position on the board because he may tend to favor investments in firms that do cancer research. To comply with Standard VI(A), Disclosure of Conflicts, Valley must inform his supervisor of this relationship and discuss his activities on the board. Even if his supervisor does not find the relationship troublesome, any subsequent action that could lead to a conflict of interest should be discussed with the firm’s compliance officer.

本Reading全部习题请下载以下文件：