Question #29
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: 12
Status: Correct
Correct Answer: A
Question
A CFA Institute member is also a member and the portfolio manager of an environmentalist group. In its charter, the environmentalist group lists a group of companies its members should boycott. The CFA Institute member would violate Standard I(
Answer Choices:
A. purchases stock of a boycotted firm for the group's portfolio
B. actively protests against a publicly traded firm boycotted by the group
C. performs either of the activities listed here
Explanation
Standard I(A) says the member must be guided by all applicable rules and regulations of
professional associations governing the member's professional activities. Purchasing the
stock for the firm would be a violation because it involves the member's professional
activities and the rules of a group to which the member belongs and works for. Actively
protesting would not be covered by that standard.
(Module 42.1, LOS 42: I(A))