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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 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
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® 2025 Level II Curriculum, Volume 6, Module 45.