Question #50
Reading: Reading 42.3 Standards of Professional Conduct Guidance for Standards III
PDF File: Reading 42.3 Standards of Professional Conduct Guidance for Standards III.pdf
Page: 20
Status: Correct
Correct Answer: A
Question
Greg Stiles, CFA, keeps a list of his clients' birthdays and has personally sent them a birthday card each year at the appropriate time. With respect to this action, which of the following may be a violation of Standard III(E), Preservation of Confidentiality?
Answer Choices:
A. Hiring a company outside the firm to perform the task
B. Sending a gift along with the card
C. The mere act of sending a birthday card each year
Explanation
According to Standard III(E), an analyst should limit the number of persons who have
access to clients' personal information. Allowing a company outside the firm to send
birthday cards could be a violation. Sending a birthday card is not a violation, nor is
sending a gift of reasonable value.
(Module 42.6, LOS 42: III(E))