CFA CFA Level 1 Ethics question from CFAI Moc test wrong?

Ethics question from CFAI Moc test wrong?

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    • Avatar of hairyfairyhairyfairy
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        I think (b) is definitely a good candidate for violation because direct monetary compensation for investment is not allowed whether you disclose it or not…

        HOWEVER, I do see your point. The key phrase here is “if Bosno agrees to make the investment”. Since the question already establishes that the fund is too risky, if Bosno agrees to invest, he is directly going against his analysis, which is not diligent nor reasonable.

        I think the CFAI twisted the question one too many times and was caught out themselves – it took me a few reads to work through the logic as well. It’s these questions that worry me in the exam, but I’ve been told that if there was such a question, it will probably end up being (a) and (b) accepted as right answers.

        Good spot @Prosper0‌!

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