Discuss CFA Institute CFA-Level-I Exam Topic 2 Question 30

Which of the following statements clearly conflicts with the recommended procedures for compliance presented in AIMR's Standards of Practice Handbook?

AInvestment recommendations may be changed by an analyst without prior approval of a supervisory analyst.

BPrior approval must be obtained for the personal investment transactions of all employees.

CFor confidentiality reasons, personal transactions should not be compared with those of clients or the employer unless requested by regulatory organizations.

DPersonal transactions should be defined as including transactions in securities owned by the employee and member of his or her immediate family and transactions involving securities in which the employee has beneficial interest.

Suggested Answer: C

Get Premium CFA-Level-I Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

23 comments · newest first

Tamekia 4 days ago

B is essential for trust. Employees must be accountable.

Yolando 10 days ago

I feel A undermines compliance. Can't have unchecked changes.

Salome 15 days ago

D is clear. Personal transactions should be well-defined.

Kayleigh 20 days ago

C is tricky. Confidentiality is key, but transparency matters too.

Corrinne 25 days ago

B makes sense. Approval protects everyone.

Carylon 1 month ago

Agreed, A is a big no. Analysts need oversight.

Vallie 1 month ago

I think A clearly conflicts. No approval? That's risky.

Jeannetta 1 month ago

Definitely A. It opens the door for manipulation.

Brent 2 months ago

I feel A could lead to unethical behavior.

Johnna 2 months ago

D is straightforward. Personal transactions should be clear.

Rosann 2 months ago

C is confusing. Confidentiality is important, but so is clarity.

Stephaine 2 months ago

B seems strict but necessary for transparency.

Marla 2 months ago

Agreed, A undermines compliance. Analysts need checks.

Marvel 2 months ago

I think A is the clear conflict. No approval? That's risky.

Miss 3 months ago

C) sounds a bit off to me, confidentiality vs. transparency is a tricky balance.

Johnna 3 months ago

B) is standard practice, can't believe some might think otherwise.

Louisa 3 months ago

Wait, are they really allowed to change recommendations without approval? That seems risky.

Rory 3 months ago

Totally agree, that’s just asking for trouble!

Miesha 3 months ago

A) is definitely a conflict. No way analysts should change recommendations without approval.

Curtis 3 months ago

I feel like option D is just defining personal transactions, so it shouldn't conflict with AIMR's standards. I think it's between A and C.

Tu 5 months ago

I'm a bit confused about option C; it seems like it could be a gray area regarding confidentiality and compliance.

Evette 5 months ago

I remember a practice question about personal transactions needing prior approval, which makes me lean towards option A as the answer.

Nakita 5 months ago

I think option A might be the one that conflicts with AIMR's standards, but I'm not entirely sure if there are exceptions for certain situations.

CFA Institute CFA-Level-I Exam - Topic 2 Question 30 Discussion