Question #42 - 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: 19

Status: Correct

Correct Answer: A

Shared Context

- Which of the following is a violation of the Code and Standards? A) Taylor sends out a resume referring to himself as a Level II CFA candidate and indicating his intention to take the Level II test in June. B) Reynolds approves Montpier’s report on Circuit Secrets immediately, but tells his traders to wait a week before buying the stock themselves. C) James has dinner with Taylor and promises to provide Taylor with three weeks off in May to study for the CFA exam and offer some test-taking tips.

Question

With regard to Standard VII(B)—Reference to CFA Institute, the CFA Designation, and the CFA Program:

Answer Choices:

A. neither Montpier nor Taylor is in compliance

B. both Montpier and Taylor are in compliance

C. only Taylor is in compliance

Explanation

Both Montpier, as a CFA charterholder, and Taylor, as a CFA candidate, are subject to the Standards. Montpier violated Standard VII(B) by exaggerating the implications of passing the exam in three years. Taylor's comments comply with the Standards.

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