Question #9 - Reading 42.4 Standards of Professional Conduct Guidance for Standards IV

Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV

PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf

Page: 4

Status: Correct

Correct Answer: A

Question

A CFA Institute member, undertaking independent practice that could result in compensation or other benefit:

Answer Choices:

A. must notify the entities for whom he plans to undertake independent practice of the compensation he receives from his employer

B. must notify his employer of the types of service to be rendered, the expected duration, and the expected compensation

C. must notify his employer and clients of the types of service to be rendered and the expected compensation

Explanation

According to Standard IV(A), Loyalty to Employer, a CFA Institute member, undertaking independent practice that could result in compensation or other benefit, must notify his employer of the types of service to be rendered, the expected duration, and the expected compensation. (Module 42.7, LOS 42: IV(A))

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