Question #21
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: 9
Status: Correct
Correct Answer: B
Question
Kenny Barrett, CFA, is working in the Australian office of American Investments Co. From an informal conversation, Barrett learns that the company's most recent investment report was based on misappropriated information. No one at the Australian office expresses concern, however, because there has been no breach of Australian law. Barrett should:
Answer Choices:
A. disassociate himself from the case with a written report to his supervisor
B. do nothing because the branch is outside of U.S. jurisdiction
C. seek advice from company counsel to determine appropriate action
Explanation
Kenny's best choice is to seek the company counsel's advice. If Kenny does nothing, he is
breaching Standard I(A) Knowledge of the Law. Disassociation is not enough.
(Module 42.1, LOS 42: I(A))