Gregor Pavlov, CFA, is a fund manager working for the general partner of a new private equity fund. Pavlov includes in the fund marketing material his performance history from his previous employer. He received permission from his former employer to take his historical return figures and the supporting research reports he used to make the related investment decisions. Did Pavlov most likely violate the CFA Institute Standards of Professional Conduct?
Yes, with regard to Record Retention No Yes, with regard to Loyalty
Came across this on the CFAI topic exams. Correct answer is A - I chose B “No”
I am confused as to why. No where in the statement does it mention anything about not retaining his records from previous employer.
Even though Pavlov had his former employer’s permission to take his performance record and supporting research reports with him, he does not have the underlying performance data to support those historical return calculations and is, therefore, most likely in violation of Standard V©–Record Retention. Pavlov had the permission of his employer to take his historical performance record and research reports with him when he left the firm, so he is not in violation of Standard IV(A)–Loyalty.
CFA Level I “Guidance for Standards I–VII” Standard V©–Record Retention
Could someone please elaborate. Thanks!