prashantsahni

All of the following are violations of conduct as members and candidates in the CFA Program, EXCEPT:

A) providing confidential program information to the public.

B) expressing opinions in disagreement with CFA Institute advocacy positions.

C) disregarding the rules related to the administration of the CFA examination.

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Members and Candidates are allowed to express their opinions about the CFA Institute and CFA Program without violation of any Standards. All of the other choices are in direct violation of Standard VII(A), Conduct as Members and Candidates in the CFA Program.

prashantsahni

Roberta Conn is an investment advisor who has a client, Ernie Ray, who is a tax lawyer. At lunch, Conn noticed Ray and the Chief Financial Officer of CDH Company at the next table. She overhears them talking and ascertains that CDH is about to announce higher than expected earnings. Before the earnings release, Ray contacts Conn and asks her to purchase 3,000 shares for his portfolio. Conn:

A) can purchase shares for Ray, but cannot ever purchase shares for her personal account.

B) must refuse to purchase the shares for Ray.

C) must wait until after she purchases the 3,000 shares for Ray to purchase shares for her personal account.

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According to Standard II(A), Material Nonpublic Information, Conn cannot act or cause others to act on material nonpublic information until the information is made public. The information overheard at lunch was material and nonpublic; therefore, Conn must wait until the information is made public before accepting Ray’s order.

prashantsahni

An analyst working at an investment firm has a client that provides income tax prep services for individuals. The client tells the analyst that as long as he is the client’s analyst, he will prepare the analyst’s income tax return free of charge. The analyst needs to:

A) do nothing since the offer is not linked to the performance of the client's portfolio.

B) inform his supervisor in writing of the offer.

C) explicitly refuse such an offer.

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Standard IV(B), Additional Compensation Arrangements, requires that members disclose to their employer, in writing, all benefits that they receive in addition to their regular compensation for services they perform on behalf of their employer.