Ethics - legal violation

Butt Man, CFA, an analyst at a New York brokerage firm, suspects that Ass Man, CFA, another analyst at the same firm, has violated a state securities law. According to the CFA Institute Standards of Professional Conduct, Butt Man is: A) required to report the suspected violation to CFA Institute. B) required to report the suspected violation to the appropriate state regulatory agency. C) not required to report the violation to the appropriate governmental or regulatory organizations.

C. Reports Ass Man to supervisor and internal compliance department.

C) not required to report the violation to the appropriate governmental or regulatory organizations.

yep it’s C for some reason i thought you had to report it to the authorities when it was a legal issue

C - Not a requirement by the CFAI to be a snitch.

UNLESS the law states that you have to tell authorities. That overwrites being a snitch

but i thought snitches get stitches

I mean that causes you to be a snitch. Brain is shutting down

Does the word “suspects” matter? Will it change anything if we replace “suspects” with “has material evidence” ?

c