Question
Which substandards make up CFA Standard VI on conflicts of interest?
Tap to flip
Answer
VI(A) Disclosure, VI(B) Priority of Transactions, VI(C) Referral Fees.
Tap to flip back
Question
Why is shorting a stock personally before publishing a Sell recommendation a Standard VI(B) violation?
Tap to flip
Answer
It front-runs a client-affecting recommendation.
Tap to flip back
Question
Under Standard VI(B), whose transactions take priority over a member's personal trades?
Tap to flip
Answer
Client and employer transactions.
Tap to flip back
Question
If an analyst's investment banking team pressures him to issue a Buy recommendation, what conflict-related step is required under Standard VI(A)?
Tap to flip
Answer
Disclose the investment banking relationship and conflict.
Tap to flip back