Question #18 - Reading 42.6 Standards of Professional Conduct Guidance for Standards VI

Reading: Reading 42.6 Standards of Professional Conduct Guidance for Standards VI

PDF File: Reading 42.6 Standards of Professional Conduct Guidance for Standards VI.pdf

Page: 9

Status: Unattempted

Shared Context

- Standard VI(A), Disclosures of Conflicts, requires Pennington to disclose all matters, including beneficial ownership of securities of other investments, that could be expected to impair the member's ability to make unbiased and objective recommendations. Which of the following matters would least likely be disclosed to Elise? A) AIA has a soft dollar arrangement with a brokerage firm owned by Pennington’s sister. B) Pennington owns shares in Allux. C) Pennington played golf with Helmut Flanders on a regular basis and developed client relationships from those golf outings.

Question

Which of the following best describes Pennington's compliance with the CFA Institute Standards regarding his use of soft dollars? The purchase of:

Answer Choices:

A. both research reports and carpeting are allowable uses of soft dollars

B. research reports and attending the conference are allowable uses of soft dollars

C. research reports is an allowable use of soft dollars

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