cxz0858

A

8586

Correct answer = D

Standards of Practice Handbook, 9^th edition (CFA Institute, 2005), p. 49
Standard II (B)
2008 Modular Level I, Vol. 1, p. 45
Study Session 1-2-a
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct
The CFA Institute Standard relating to market manipulation requires members/candidates to not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants. Mancini failed to follow regulations on late trading and allowed the hedge fund client to manipulate the time of its trading and thereby mislead other market participants and benefit itself.