Ethical and Professional Standards Q114

114Norman Bates, CFA works as an analyst for Angle Investments. She has been asked to cover investments in the Asian markets for their high rate of return. The trip is sponsored by Sia, an investment and brokerage firm. Bates knows that Sia charges commission at a higher rate than the other brokerage facilities used by her firm. Nevertheless she convinces the trading desk at Angle to give more business to Sia so she can take the trip. Bates is most likely violating the CFA Institute Standard of Professional Conduct related to:

Option : B
Explanation : Bates is violating Standard III(A) Loyalty, Prudence and Care. He should have weighed the benefits of the trip against the commission charged by Sia. He should have also determined whether best execution and prices could be received from Sia.

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