Question #46
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: 24
Status: Correct
Correct Answer: B
Part of Context Group: Q45-46
Shared Context
Question
Which of the following statements regarding Sandro's biography is least accurate?
Answer Choices:
A. Sandro must disclose her stake in a thinly traded, family-owned construction company
B. Sandro can begin using the CFA designation as soon as she receives her exam results
C. Sandro need not deliver a copy of the Code and Standards to Ferrazzo
Explanation
Just because Sandro receives her results from CFA Institute, she still must satisfy all of the
requirements before she can use the designation. The standard governing use of the CFA
mark states that there is no acceptable term for a partial designation. According the
Standards of Practice Handbook, 9th Edition, delivering a copy of the Code and Standards
is no longer required. Standard VI(A): Disclosure of Conflicts, requires the disclosure of all
security ownership that might interfere with a member's duties. While the stock is thinly
traded, it still might be of interest to Seamark clients, and Sandro must disclose her
ownership. In addition, if she holds a position in the company or on the board that could
take up some of her time, Standard IV(A): Loyalty to Employer, also comes into play.
(Module 42.8, LOS 42: V(A))