evolsteevol

Omg.  This one.  Have to disagree - just because colleagues don’t “conscientiously maintain records” of changes in security regulations doesn’t mean they don’t KNOW them, right???  Are they not online at the SEC???  I don’t see how not maintaining a record constitutes NEGLECT.
Ridiculous.


A CFA Institute member conscientiously maintains records of changes in security regulations. The member notices that his colleagues do not, and does NOT say anything. Is this a violation of Standard I(A)?
A)
Yes, because the member is bound by the Code of Ethics.
B)
Yes, and the member should disassociate from these colleagues.
C)
No, as long as the colleagues do not violate the new rules.
Your answer: C was incorrect. The correct answer was A) Yes, because the member is bound by the Code of Ethics.
The last bullet point of the Code says that a member shall “Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.” Ignoring the neglect of rule changes of others would clearly be incongruent with this component. As long as the colleagues do not violate the laws, the member does not have to disassociate himself from the colleagues.