"morality" exercise:Responsibilities as a CFA Candidate

A is correct because golf equipment is a business independent of the financial services industry such that any board obligations would not likely be considered a conflict of interest requiring disclosure according to Standard IV(B)–Additional Compensation Arrangements. Standard IV(B) requires members and candidates to obtain permission from their employer before accepting compensation or other benefits from third parties for the services that might create a conflict with their employer’s interests. Managing investments for family and non-family members could likely create a conflict of interest for Younis’ employer and should be disclosed to his employer.

B is incorrect, as Younis should have made full and fair disclosure of all matters that could reasonably be expected to impair his independence and objectivity or interfere with his respective duties to his clients, prospective clients, and employer as required by Standard VI(A)–Disclosure of Conflicts. Since the majority of his time is now spent on fund management, in potential competition with his employer, he would need to disclose this. Disclosure of the outside work should also have been made at the time of employment so that his employer was fully aware of these activities and could make their own judgment on whether or not these activities impaired the broker’s ability to complete his responsibilities at the financial services organization.

C is incorrect, as Younis should have made full and fair disclosure of all matters that could reasonably be expected to impair his independence and objectivity or interfere with his respective duties to his clients, prospective clients, and employer as required by Standard VI(A)–Disclosure of Conflicts. Since the majority of his time is now spent on fund management, in potential competition with his employer, he would need to disclose this. Disclosure of the outside work should also have been made at the time of employment so that his employer was fully aware of these activities and could make their own judgment on whether or not these activities impaired the broker’s ability to complete his responsibilities at the financial services organization.

B is correct because the Standards do not prevent a person from claiming to be an expert in their area of specialty as long it is not a misrepresentation and/or an exaggeration of their skill and expertise.

A is incorrect because according to Standard VII, CFA Institute trademarks are not allowed to be abbreviated.

C is incorrect because Standard VII–Responsibilities as a CFA Institute Member or CFA Candidate restricts the disclosing of all aspects of the CFA exam, including broad topical areas. These are considered confidential and thus should not be discussed over the Internet.