Question #8
Reading: Reading 42.1 Standards of Professional Conduct Guidance for Standards I
PDF File: Reading 42.1 Standards of Professional Conduct Guidance for Standards I.pdf
Page: 4
Status: Correct
Correct Answer: B
Question
If an analyst suspects a client or a colleague of planning or engaging in ongoing illegal activities, which of the statements about the actions that the analyst should take is most correct? According to the CFA Institute Standards of Professional Conduct, the analyst should:
Answer Choices:
A. disassociate from any illegal or unethical activity if the member has reasonable grounds to believe that the activity is illegal or unethical
B. consult counsel to determine the legality of the activity
C. consult counsel to determine the legality of the activity and disassociate from any illegal or unethical activity if the member has reasonable grounds to believe that the activity is illegal or unethical
Explanation
According to the procedures for compliance involving Standard I(A), CFA Institute
members should determine legality and disassociate from any illegal or unethical activity.
(Module 42.1, LOS 42: I(A))