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Basic Question 8 of 8
In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard VI (A) Disclosure of Conflicts, which of the following ways is (are) (an) effective method(s) for member compliance?
II. Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.
III. When in doubt if a situation represents a conflict, it should be discussed with the compliance officer or supervisor.
I. Members should report any beneficial interest that they may have in securities to their employers.
II. Members should report any beneficial interest that they may have in any corporate directorships, trustee positions, or any other relationships that could pose a conflict of interest with their responsibilities to their employers.
III. When in doubt if a situation represents a conflict, it should be discussed with the compliance officer or supervisor.
User Contributed Comments 6
| User | Comment |
|---|---|
| Nancie | (I): should report all interests even if the employer doesn't require that? |
| SueLiu | Even if the employer doesn't require it, the Code does, so a member/candidate must go by that rule. |
| Khadria | "I" may not be correct because having beneficial interest in securities with which employer has nothing to do, doesn't enforce their disclosure to the emplyer. ONLY IF IT MAY CAUSE CONFLICT. |
| nike | they should report all securities as sometimes employees are not in the best position to make such a judgment (beneficial interest exists or not). |
| Farina | That's a really good point Nike... |
| NikolaZ | Rule of thumb, use the stricter rule. Gotta love that thumb. |
Your review questions and global ranking system were so helpful.
Lina
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.