Ethical and Professional Standards Q47

47Christie Tania, CFA, works as a fixed income manager for Mastermind Invest Capital. She finds an error in the performance results of one of her accounts as the report is about to be released to the client. The correction of the error will show an underperformance of the account compared to the selected benchmark. The client is not satisfied with Mastermind and had previously indicated that the account will be terminated if it did not meet the requisite returns. According to the CFA Institute Standards, Tania should:

Option : B
Explanation : According to Standard III(A) Loyalty the client needs to be informed with the updated result of the underperformance of his account. Withholding information is not in the best interest of the client.

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