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Basic Question 6 of 7
Which of the following is false?
B. An analyst refers clients to her firm's personal financial-planning division. She receives a commission for successful referrals. She has violated the Standard for conflict of interest.
C. An investment manager directs trades for a client to a brokerage that does not provide best execution, but does provide research that is used for investment decision making process. This has not been disclosed to the client. The investment manager has not violated the Soft Dollar Standards.
A. A broker recruits clients for his brokerage firm but does not disclose to them that he receives a commission for successful referrals. He has not committed any violation.
B. An analyst refers clients to her firm's personal financial-planning division. She receives a commission for successful referrals. She has violated the Standard for conflict of interest.
C. An investment manager directs trades for a client to a brokerage that does not provide best execution, but does provide research that is used for investment decision making process. This has not been disclosed to the client. The investment manager has not violated the Soft Dollar Standards.
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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.