Question #49
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: 25
Status: Correct
Correct Answer: B
Question
Four months ago Lance Tuipuloto, CFA, analyzed three equity securities for Janet Scadden. However, Scadden decided to invest in bonds instead. Tuipuloto now wants to destroy the records from the stock analysis. Is this action in compliance with Standard V(C)?
Answer Choices:
A. Yes. Tuipuloto does not need to keep the records because his advice was not followed
B. Yes. Tuipuloto only needs to keep the records for 90 days
C. No
Explanation
According to Standard V(C), Record Retention, the files should be not be destroyed. The
CFA Institute recommends keeping all records for at least 7 years.
(Module 42.8, LOS 42: V(C))