CFA CFA Level 1 Question of the Week – Ethical and Professional Standards

Question of the Week – Ethical and Professional Standards

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  • AdaptPrep
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    Joyce Price issues weekly investment reports. Joyce looks for trends and commonalities within the research community. She then presents the findings as her own research and doesn’t cite any sources. Joyce gives them to her boss, Soojung Yu, CFA. Soojung peer-reviews the reports and does not mention anything about citing sources. Has Soojung most likely violated the Standards?

    • Yes
    • Yes, if Joyce is a CFA member, charterholder, or candidate
    • No
    AdaptPrep
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    The Standards which apply are:

    Misrepresentation. Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

    Responsibilities of Supervisors. Members and Candidates must make reasonable efforts to detect and prevent violations of applicable laws, rules, regulations, and the Code and Standards by anyone subject to their supervision or authority.

    Soojung is responsible to make reasonable efforts to prevent Joyce from violating the Standards. If Joyce isn’t a CFA member/charterholder/candidate, Joyce isn’t responsible for fulfilling the Standards. But Soojung is responsible as a supervisor.

    shannondaily
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    Woo! I got it right. 🙂 

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