Standard I(A) Compliance Quiz

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Who does the CFA Institute encourage to report violations of the Code and Standards?

Only nonmembers and clients

Only the investing public

Members, nonmembers, clients, and the investing public (correct)

Only CFA Institute members

Where can violations of the Code and Standards be reported?

Via social media platforms

Via email or the CFA Institute website (correct)

Via phone call only

Via postal mail only

Where should investment services and products be sold?

In countries of origin (correct)

In any country with high demand

In countries with low competition

In countries with minimal regulations

Who should conduct supervision of investment services and products?

Those responsible for supervision Signup and view all the answers

Why is it crucial to understand the laws and regulations of the countries or regions of origin and expected sale?

To comply with legal requirements Signup and view all the answers

What is necessary when transacting cross-border business?

Due diligence is necessary to protect reputation and firm's reputation Signup and view all the answers

Why should members and candidates seek guidance from compliance or legal departments and external legal counsel?

To understand their responsibilities and implement them appropriately Signup and view all the answers

What should be done due to the complexity of business transactions in today's market?

Seek guidance from compliance or legal departments and external legal counsel Signup and view all the answers

What should members and candidates do if they believe imminent or ongoing client or employer activities are illegal or unethical?

Dissociate from the activity Signup and view all the answers

What is the recommended action if direct discussions with the person committing a violation are unsuccessful?

Bring it to the employer's attention Signup and view all the answers

What does the CFA Institute strongly encourage members and candidates to do regarding potential violations of the Code and Standards committed by fellow members and candidates?

Report them Signup and view all the answers

What should members and candidates do if they are not aware of all the facts leading to a violation?

They may not recognize violations Signup and view all the answers

When is dissociation from the activity required if a member or candidate believes imminent or ongoing client or employer activities are illegal or unethical?

If they believe imminent or ongoing client or employer activities are illegal or unethical Signup and view all the answers

Is voluntary reporting of potential violations of the Code and Standards mandatory under applicable law?

No, it is not mandatory Signup and view all the answers

Who should members and candidates consult for guidance regarding potential violations of the Code and Standards?

Legal and compliance advisers Signup and view all the answers

What does Standard I(A) apply to according to the text?

When members or candidates know or should know that their conduct may contribute to a violation of applicable laws, rules, or regulations or the Code and Standards Signup and view all the answers

What should members or candidates do if direct discussions with the person committing the violation are unsuccessful?

They must attempt to stop the behavior by bringing it to the employer's attention Signup and view all the answers

What is strongly encouraged by the CFA Institute for members and candidates to do?

Report potential violations of the Code and Standards committed by fellow members and candidates Signup and view all the answers

What should members or candidates do if they believe imminent or ongoing client or employer activities are illegal or unethical?

Dissociate from the activity Signup and view all the answers

What is not mandatory under applicable law but may be prudent under certain circumstances?

Voluntary reporting of potential violations Signup and view all the answers

What does the CFA Institute presume members and candidates to have knowledge of?

All applicable laws, rules, and regulations Signup and view all the answers

When should members or candidates dissociate from illegal or unethical activities?