A CFA Institute member is also a member and the portfolio manager of an environmentalist group. In its charter, the environmentalist group lists a group of companies its members should boycott. The CFA Institute member would violate Standard I(A) concerning obeying all rules and regulations if the member: A) buys, for personal use, a product made by a boycotted firm. B) actively protests against a publicly traded firm boycotted by the group. C) purchases stock of a boycotted firm for the group’s portfolio. D) performs any of the activities listed here.
C.
C since it probably violates the IPS.
C is true for sure. I don’t see a problem with B so I guess it should be C. Very tricky one, curious for the answer.
I remember from level I that you can protest…I think.
it has to be C
C, that was an easy one.
You guys are fast and right!!! A CFA Institute member is also a member and the portfolio manager of an environmentalist group. In its charter, the environmentalist group lists a group of companies its members should boycott. The CFA Institute member would violate Standard I(A) concerning obeying all rules and regulations if the member: A) buys, for personal use, a product made by a boycotted firm. B) actively protests against a publicly traded firm boycotted by the group. C) purchases stock of a boycotted firm for the group’s portfolio. D) performs any of the activities listed here. Your answer: D was incorrect. The correct answer was C) purchases stock of a boycotted firm for the group’s portfolio. Standard I(A) says the member must be guided by all applicable rules and regulations of professional associations governing the member’s professional activities. Purchasing the stock for the firm would be a violation because it involves the member’s professional activities and the rules of a group to which the member belongs and works for. Buying a product for personal use from a boycotted company would not be covered by Standard I(A) nor would actively protesting be covered by that standard.