Question #1
Reading: Reading 42.5 Standards of Professional Conduct Guidance for Standards V
PDF File: Reading 42.5 Standards of Professional Conduct Guidance for Standards V.pdf
Page: 1
Status: Correct
Correct Answer: B
Question
Ten years ago Lance Tuipuloto, CFA, met with Horace and Nichole Scadden to discuss potential investments, but these prospects never became clients. Tuipuloto now wants to destroy the records from the meeting with the prospective clients. Is this action in compliance with Standard V(C)?
Answer Choices:
A. Yes; the prospects never became clients
B. Yes; A sufficient number of years have passed since the meeting
C. No
Explanation
According to Standard V(C), Record Retention, the files may be destroyed. The CFA
Institute recommends keeping all records for at least 7 years. Given that more than 7
years have passed since Tuipuloto's meeting with the Scaddens, it is not against Standard
V(C) to get rid of the records from that meeting.
(Module 42.8, LOS 42: V(C))