Ethical and Professional Standards Q73

0. Izzy Zubeika, CFA, works for Topworth Mutual Fund and is a portfolio manager for an aggressive growth equity fund. She is planning to sell a large portion of her investment to meet the medical costs of her ailing husband. Zubeika wants to sell her stake in Royal Beverages, but her firm has recently upgraded the stock from “hold” to “buy”. Nevertheless after receiving approval from her employer she informs her broker to conduct the trade. Has Zubeika violated any CFA Institute Standards of Professional Conduct?

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Option : C
Explanation : No violation has occurred because she has received approval from her employer. Standard VI(B) Priority of Transactions does not limit transactions of employees which are different from the current recommendations as long as they do not disadvantage the current clients.

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