91.2 Guidance for Standards I(C) and I(D)

Which of the following is most likely permitted under Standard I(C), Misrepresentation?

A money manager works for a full-service brokerage firm. After meeting with a new client and gathering all relevant information, the money manager says that she thinks her firm can perform all the financial services the new client needs. With respect to the Standard on misrepresentation, this statement:

An analyst belongs to a nationally recognized charitable organization, which requires dues for membership. The analyst has worked out a deal under which he provides money management advice in lieu of paying dues. While performing services for the organization, the analyst discovers some useful computer programs that his predecessor developed and left as the property of the organization. The analyst decides to use the computer programs in his consulting business. This action is:

Jerry Brock, CFA, is a partner in a small investment advisory firm that caters to high net worth individuals. He has experienced a number of financial setbacks in his personal life over the past two years and has filed for bankruptcy protection. Brock does not inform his clients of this. Has Brock violated CFA Institute Standards of Professional Conduct?

All of the following are violations of Standard I(D), Misconduct, EXCEPT:

Which of the following actions most likely violates Standard I(D) Misconduct?

Sandra Bulow, CFA, is responsible for updating her employing firm's website to include changes in analysis techniques and trading procedures. She is often very delinquent in making these changes, despite working extensive hours. She is aware clients are using the website to make investment decisions, and has received complaints from the sales department as the information on the website if often different from what is presented in sales meetings. Bulow is most likely:

Marc Randall, CFA, is an investment analyst. During a meeting with a potential client, Randall's boss states that, "You can be sure our investments will always outperform Treasury Bonds because of our fine research staff members, like Marc." Randall knows that this statement is:

Timothy Hooper, CFA, is a security analyst at an investment firm. In his spare time, Hooper serves as a volunteer for City Pride, which collects clothes for the homeless. Hooper has occasionally given some of the clothes to his friends or sold the clothes instead of returning all of the clothing to City Pride. City Pride discovers what he has been doing and dismisses him. Later, City Pride learns that other volunteer organizations have dismissed Hooper for similar actions. Has Hooper violated Standard I(D) on professional misconduct in the CFA Institute Standards of Professional Conduct?

A CFA charterholder in a managerial position is in the process of hiring new analysts. If the charterholder conducts background checks on the job applicants with respect to their character, the charterholder has:

Which of the following least likely violates the Standard concerning misconduct? Roland Lawson, a financial analyst:

Based on CFA Institute Standards of Professional Conduct, which of the following statements is a violation of Standard I(C), Misrepresentation?

A CFA charterholder takes a trip for which his firm will pay the expenses. Upon his return, he alters some of the numbers on restaurant receipts to inflate the expenses by about one half of a percent. Is this a violation of the Code and Standards?

An analyst preparing a report needs to cite which of the following?

Erik Bagenot, CFA, uses factual information published by Standard & Poor's Corporation without acknowledging the source and uses excerpts from a research report prepared by another analyst, making only slight wording changes but acknowledging the source. Sally Wain, enrolled in the CFA program, prepares a report citing several quotations from investment experts from a conference without specific reference. According to CFA Institute Standards of Professional Conduct involving prohibition against plagiarism, which of the following statements is CORRECT?

Which of the following are recommended procedures of compliance according to Standard I(D), Misconduct?

Which of the following would be permissible under Standard I(C), Misrepresentation?

According to CFA Institute Standards of Professional Conduct, which of the following is least likely a form of misrepresentation?

Hillary Jones, CFA, sometimes promises clients that she will allocate more shares from oversubscribed initial public offerings (IPOs) than she knows she will actually be able to deliver. Her employer has reprimanded her in the past for similar behavior. Which of the following statements is least accurate regarding Jones' behavior?

According to CFA Institute Standards of Professional Conduct, which of the following statements about the prohibition against plagiarism is most accurate? The prohibition against plagiarism applies to written materials:

A CFA charterholder is caught shoplifting and is sentenced to nine months in prison. Is this a violation of Standard I(D) Misconduct?

Paul Thomas, CFA, is designing a new layout for research reports his firm writes and issues on individual stocks. In his design, Thomas includes a stock chart on the first page of each report. He does not reference that the charts are copied from the Standard & Poor's website. Thomas has:

A CFA charterholder who comes to work intoxicated is:

All of the following violate Standard I(C), Misrepresentation, EXCEPT:

Wes Smith, CFA, has been working toward the completion of a Master of Science in Finance. He has passed all the necessary courses and written the necessary thesis. He still must defend the thesis in one month. Smith's thesis advisor assures him that he will pass the thesis defense. Smith has new business cards printed with "M.S. in Finance" after his name. This is a violation of: