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Question of the Week: Level 2 - Ethics

Preston Faider supervises the compliance department at Global Investment Advisors (GIA).  At the beginning of the year, there were changes in several laws that apply to performance presentation and comingling of investment funds.  Faider has prepared a brief summary of the changes, highlighting how those changes will affect procedures at GIA and has distributed the summary to all affected employees.  Faider has most likely:

Question of the Week: Level 2 - Ethics 6 votes

violated Standard I(A) Knowledge of the Law.
0% 0 votes
violated Standard IV(C) Responsibilities of Supervisors.
0% 0 votes
not violated CFA Institute Standards of Professional Conduct.
100% 6 votes


  • MarkMeldrumMarkMeldrum OntarioPosts: 73 Associate

    The correct answer is Option C:

    The employees at GIA are not responsible for detailed knowledge of applicable laws; that responsibility lies with the compliance department and GIA’s legal counsel.

    Faider’s summary, which highlights how the changes will affect GIA’s employees, complies with Standard I(A).

    Standard IV(C) is not applicable as Faider’s actions do not fall under supervisors’ responsibilities.

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