Ethical And Professional Standards - Ethical And Professional Standards Section 1
- Option : C
- Explanation : Czcibor has not violated VI(C) Referral Fees because she obtained permission from her employers, the school, and the clients.
- Option : A
- Explanation : If the information is not publicly disseminated by the company and Dobrogost uses it, then it becomes material nonpublic information, hence a violation of Standard II(A). A small group of stakeholders does not qualify as the public. He cannot use the information.
- Option : C
- Explanation : No violation has occurred because she has received approval from her employer. Standard VI(B) Priority of Transactions does not limit transactions of employees which are different from the current recommendations as long as they do not disadvantage the current clients.
- Option : C
- Explanation : Li may have violated the Standard relating to Priority of Transactions when purchasing the shares for her account. She has accepted Dragon’s offer to join as managing partner, has discussed the shares with Wang, and knows, or should know, that she will purchase them for at least some Dragon clients once she begins work at Dragon. Her purchase ahead of Dragon clients might be front-running. Best practice would be to delay her private account purchase until after she purchases for clients.
- Option : B
- Explanation : Kazuya violates Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program, by using an improper designation on her business cards. Farnsworth reference is proper according to Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program.
