Ethical and Professional Standards Q81

81Janis David is the head of the research department at BAW, Inc. a brokerage firm. She has decided to change her recommendation of the Cooper & Ginto Mines from sell to buy. She informs the other executives of the firm orally before a report is prepared and sent to all customers. David‟s actions are in line with the firm policy. Roger Little, one of the junior analysts at BAW immediately buys Cooper & Ginto stock for himself and informs some of his contacts who are also BAW's clients for whom it is appropriate. David has most likely violated the CFA Institute Standards of Professional Conduct related to:

Option : A
Explanation : David has violated Standard IV(C) by failing to supervise the actions of those accountable to her. She did not set up procedures to prevent the dissemination of or trading on the information.

Forgot your password?

I agree with the Terms.