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CFA Level 1 Question of the Week - Ethical and Professional Standards
Ella Lawson is the chief executive at Rome Bank,
a commercial banking enterprise. On
behalf of the bank, Rome will be
providing funding to a manufacturing
enterprise seeking to expand its operations. During her visit to the manufacturer’s factory, Lawson overhears
two employees on the production floor discussing
the likelihood of their employer’s inability to carry out expansion. Lawson
holds shares of the enterprise and decides to sell her holding and reject providing financial support. Lawson is
most likely in violation of the CFA Institute Standard of Professional Conduct relating to:
CFA Level 1 Question of the Week - Ethical and Professional Standards 9 votes
A. Loyalty, prudence, and care.
B. Diligence and reasonable basis.
C. Material, nonpublic information.
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