Reading 1- LOS A - Q18 style, black, class

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18、Which of the following is a violation of the Code and Standards?

A)   Johnson gathering information over the phone.

B)   Black paying for the dinner with Johnson.

C)   Johnson having the assistant type up Campbell’s information.

D)   Gowan giving Johnson the right to contact Campbell before he had earned the CFA designation.

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The correct answer was B)

Apparently Johnson has been referring many clients to Black, a practice Johnson hides from the clients, and the dinners Black has paid in return would qualify as a benefit received by the member or delivered to others for the recommendation. This violates Standard VI(C) Referral Fees and Standard III(E) Preservation of Confidentiality. None of the other circumstances listed violate the Code and Standards.