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Basic Question 6 of 8
Which of the following actions is (are) NOT possible conflicted situations?
II. purchasing securities that are prohibited by the employer
III. purchasing securities that are allowed by the employer
IV. external board positions taken up by the employee
I. purchasing securities in a company that the analyst writes a report on
II. purchasing securities that are prohibited by the employer
III. purchasing securities that are allowed by the employer
IV. external board positions taken up by the employee
User Contributed Comments 5
| User | Comment |
|---|---|
| jainrajeshv | What is wrong if Analysts purchase the securities after publishing his report? Is it still fall under the conflict of Interest |
| epiziL2 | I think so, that means conflict on future reccomendations given an ownership of the security. |
| dblueroom | It's not a violation to own securities that you cover, but it represents a conflict of interest, and must be disclosed. |
| johntan1979 | Note the difference between "allowed" and "approved". "Approved" can be conflicting interest but employer gives the go ahead. |
| marianne1 | If allowed by the employer is fine. See explanaiton |
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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.