Question

The misconduct standard included in the CFA Standards:

Group of answer choices(E/G)

A.may be applied whether or not the member breaks government legislation

B.can only be applied when the member breaks government legislation

C.can only be applied when the member has not breached government legislation

D.includes actions which damages the reputation of the CFA profession where deliberately undertaken

E.may be applied whether or not the member breaks government legislation and includes actions which damage the reputation of the CFA profession

G.can only be applied when the member has not breached government legislation and includes actions which damages the reputation of the CFA profession

Answer 1

The answer is (E) may be applied whether or not the member breaks government legislation and includes actions which damage the reputation of the CFA profession.

This is because in regard to standard ID -Misconduct, standards of professional conduct states that "Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence." and also explains that "Conduct that damages trustworthiness or competence may include behavior that, although not illegal, nevertheless negatively affects a member’s or candidate’s ability to perform his or her responsibilities."

This means that even if the member does not breaks government legislation, this standard ca be applied. This standard can also be applies when the member/candidate breaks the government legislation. This includes actions which negatively affects a member’s or candidate’s ability to perform his or her responsibilities and results in damaging the reputation of the CFA profession.

(a) is incorrect because it onle covers the partial application of the standard. It does not cover the damage on the reputation of a CFA profession.

(b) is incorrect because the standard may also be applied if candidate/member does not break the government legislation.

(C) is incorrect because the standard may also be applied if candidate/member breaks the government legislation.

(d) in incorrect because it does not cover the application regarding whether not it applies when candidate/ member breaks the government legislation.

(f) is incorrect because the standard may also be applied if candidate/member breaks the government legislation.