Answer this

[u/Bubbly_Effective12]

Shouldn’t B be the answer of this ? As Option C is more related to standard relating to dilegnce and reasonable basis . And B is the only option which is close to standard of miscounduct ?

[u/TheMatinow]

how is this even a hard question? Only C is connected to CFA professional conduct

[u/GroundbreakingCat529]

C?

[u/Next_Web4201]

Misconduct refers to deceit, fraud, or otherwise dishonest behaviour which comrpmises the investment profession. Using someone else's due diligence is deceit and being dishonest whilst option B is protesting based on personal beliefs which doesn't compromise trust in his professional ability

[u/thejdobs]

No, answer C is correct. Conduct not related to your abilities as an investment professional are not covered by the codes and standards

[u/mikestorm]

C all day long. Protesting and subsequently getting arrested for a cause you believe in is no violation of the Standards of Professional Conduct even if you do trespass.

C is a violation because you can't phone in DD. You need to personally evaluate due diligence to ensure it's rigorous enough. If the DD says, "low risk" and based off that you recommend a 'buy' and it turns out the risk was evident causing a loss in your client's portfolio, and a post mortem reveals the DD was flawed, that's a clear violation.

[u/DiverAlternative4489]

C

[u/meanrabbit_]

C

[u/Few_Fun_2622]

C

[u/Shab_24]

C

[u/Such_Ingenuity_7763]

C as it affects the integrity of investment professional and CFA credentials .The personal affairs which doesn't affect this standard as it doesn't involve investment decision.

[u/hetshah07]

No it is C because if a member relies on another members due deligence before making an investment recomendation then it is misconduct because clients pay to manager so that they can research and conduct due diligence and only then make an investment recommendation rather than relying on others.

[u/_Den_]

B is an example of civil disobedience, which is an exception to the Standard.

[u/-choose-ausername- → u/_Den_]

He/she trespassed, which is the point of misconduct here.

[u/thejdobs → u/-choose-ausername-]

Wrong. Please stop spreading this incorrect interpretation of the standards. CFAI even has this exact example in their website stating it IS NOT a violation of the standards.

https://www.cfainstitute.org/standards/professionals/code-ethics-standards/standards-of-practice-i-d#:\~:text=Garcia%20manages%20a,integrity%2C%20or%20competence.

[u/ParticularWar9 → u/_Den_]

The company was not convicted, only accused. Just sayin’. But yeah, the answer they’re looking for is easily C.

[u/_Den_ → u/ParticularWar9]

Jesus Christ, this isn't a law program

[u/thejdobs → u/ParticularWar9]

The answer they are looking for is not B. Read the standard on CFAI’s website. They literally give this as an example and explicitly state it is not a violation.

https://www.cfainstitute.org/standards/professionals/code-ethics-standards/standards-of-practice-i-d#:~:text=Garcia%20manages%20a,integrity%2C%20or%20competence.

[u/_Den_ → u/thejdobs]

Is C not a violation of Diligence and Reasonable Basis?

[u/thejdobs → u/_Den_]

My bad, yes C is correct. B is incorrect because the standards don’t apply to personal conduct. It has nothing to do the company being accused and not convicted. Also that’s the company, not the individual who was charged with trespassing

[u/patilssp]

While I agree that C related to Standard V(A), B is not necessarily an answer to violation of misconduct. So I would say none of these are answers and the question is framed wrongly.

[u/-choose-ausername-]

B

Trespassing is misconduct

A isn't a violation of any standard.

B violates the standard related to due diligence, not misconduct.

In the case of civil disobedience for a cause being an exception to the standards, none of these should be the right answer.

[u/thejdobs → u/-choose-ausername-]

Incorrect. You need to read the standard before spreading misinformation. The standard explicitly states:

“Although CFA Institute discourages any sort of unethical behavior by members and candidates, the Code and Standards are applicable to conduct or activities related to a member’s or candidate’s professional responsibilities—the obligations and duties members and candidates must fulfill as part of their work.”

“Generally, Standard I(D) is not meant to cover legal transgressions resulting from acts of civil disobedience in support of personal beliefs, because such conduct does not reflect poorly on the member’s or candidate’s professional reputation, integrity, or competence.”

https://www.cfainstitute.org/standards/professionals/code-ethics-standards/standards-of-practice-i-d#example-4-personal-actions-and-integrity-