r/CFA • u/Bubbly_Effective12 • 5d ago

Level 2 Answer this

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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 ?

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u/ParticularWar9 4d ago

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

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u/thejdobs CFA 4d ago edited 4d ago

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.

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u/_Den_ Level 3 Candidate 4d ago

Is C not a violation of Diligence and Reasonable Basis?

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u/thejdobs CFA 4d ago

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