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Ethical and Professional Standards Q61

0. Julie Grosky, CFA, works for Harvest Mutual Fund where she manages a fixed income fund. In a hastily compiled performance review, Grosky reports to her clients that her fund has exceeded the benchmark by 0.20%. Stuart Brennan is a client of Harvest, who writes back to inform Grosky that the fund actually underperformed the benchmark. Grosky incorrectly blames the error on a computer program newly implemented at Harvest. Grosky least likely violated the Standard relating to:

  • Option : C
  • Explanation : Standard I(B) Independence and Objectivity involves members and candidates not accepting any gifts or benefits that could be expected to compromise their independence and objectivity. Since no benefits were received Grosky has least likely violated I(B). Grosky most likely violated the Standards I(C) Misrepresentation, and I(D) Misconduct because she knowingly misrepresents the cause of the error.
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