Question #17
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: 7
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
According to CFA Institute Standards of Professional Conduct, which of the following is least likely a compliance procedure for maintaining independence and objectivity in making investment recommendations or taking investment action?
Answer Choices:
A. Maintain files to support investment recommendations
B. Restrict special cost arrangements related to travel
C. Create a restricted list so that the firm disseminates only factual information about a controversial company
Explanation
Maintaining files to support investment recommendations is not a compliance procedure
for Standard I(B): Independence and Objectivity, but it is a compliance procedure for
Standard V(C): Record Retention.
(Module 42.1, LOS 42: I(B))