Ethics Q's

Hi All, I got 1 questions from free ethics questions from CFAI 1. Which one is violation of code and standards A. Conviction of possesion of drugs B. Conviction of drink and driving C. Personal bankruptcy D. Submitting false reimbursement form Thanks


I answered D as well, but i think it was wrong. For A,B, dont you think they are breaching the Professionalism standard of professional conduct for misconduct ? Misconduct: members and candidates must not engage in any professional conduct involving dishonesty , fraud or deceit or commit any act that refelects adversely on their professional reputation, integrity or competence.

I had answered that when I took the test in 2007 and it was right as evidenced below: Question 12 of 49 Which one of the following scenarios is MOST LIKELY to be a violation of the Code and Standards: A conviction for possession of drugs. A conviction for drunk driving. Submitting false expense reimbursement forms. Personal bankruptcy. 1 out of 1 I had answered C.

I am going with D Mainly because it is can adversely affect their professional integrity, Standard I(D) - misconduct.

From the sounds of it, CFAI is ok with you getting a DUI while driving home with a hooker in your car as long as a client isn’t there as well.

Agree with chasing goats, as long as you are not driving with a client or you are not DUI while punching sell orders into a blackberry then CFAI is ok with it. That said they are one of the few professional bodies that I deal with that would not have issues with DUI in general.

D forsho. PS: What chasing goat said is very true. As long as you are not with the CLIENT.

What is the difference between A, B and D-they are all jeperdizing the image. I think-sorry sure-the question has a “not” in it-as my friend CPK123 points. You would not choose someone to trust with your money for financial advising if he has these wonderful qualities. The CFAI always says it is a profession based on trust. But I would put my money with an honest guy who got bankrupt because of a lousy marraige, or a personal circumstance that got him down. Saying this I hope he is not bankrupt because of invetsment decisions… C

Dude, the question is not if you’d trust the guy or not. Just if it’s a violation of the code, and the code is explicit. Whatever you do at your time is your business: A, B, and C are off. At best you may be force to present some personal information to your client/employer, but it’s not a violation to be irresponsible or an ass at your own time. D is the only violation.

Thanks for the clarification cpk

Now it makes sense CVD. I miss words too. Feels bad!!!