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Basic Question 3 of 3

Bob Herman, CFA, has a large extended family and manages the portfolios of several family members. Bob does not charge the family members a management fee, but receives a small percentage of each portfolio's profits. Bob accepts a position as portfolio manager for A-Plus Investments to manage high-net-worth accounts. Because the family portfolios are not customary or normal client relationships, Bob does not inform his new employer of his side activity. Bob is least likely to have violated which CFA Institute Standard of Professional Conduct?

A. Loyalty
B. Preservation of Confidentiality
C. Additional Compensation Agreements

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity

recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards

CFA® 2025 Level I Curriculum, Volume 6, Module 3.