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Basic Question 3 of 7
Frank should disclose to clients about companies he recommends if ______
II. he is acting as the company's market maker.
III. he has a 30% ownership of the company.
IV. he is a director in the company.
I. he has an underwriting relationship with the company.
II. he is acting as the company's market maker.
III. he has a 30% ownership of the company.
IV. he is a director in the company.
User Contributed Comments 6
| User | Comment |
|---|---|
| ggupta | yes..anything which is expected to raise concern about the conflict on Interest..provide appropriate disclosures |
| JimM | What about a mere 25% ownership in the company? |
| bundy | Any ownerhip |
| oncewerepirates | What about a mere 20% ownership in the company? |
| johntan1979 | Even if you have 0.001 share ownership. The CFA Standard VI(A) does not specify the percentage ownership, so it means ANY amount of ownership. |
| MapherRdz | Yeah, any ownership must be disclosed not only if you have equal or more than the 30% |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct;
explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct.
CFA® 2026 Level II Curriculum, Volume 6, Module 45.