Jane Dawson, CFA, an analyst at a New York brokerage firm, suspects that Bob Boatman, CFA, another analyst at the same firm, has violated a state securities law. According to the CFA Institute Standards of Professional Conduct, Dawson is: A)
| required to report the suspected violation to CFA Institute. |
| B)
| required to report the suspected violation to the appropriate state regulatory agency. |
| C)
| NOT required to report the violation to the appropriate governmental or regulatory organizations. |
|
The Code and Standards do not require that members report legal violations to the appropriate governmental or regulatory organizations, but such disclosure may be prudent in certain circumstances. Dawson should consult legal counsel and disassociate from the activity. |