here’s another question i made up…that i though yous out there might be interested in hearing not only can i make up a quesiton (thus not violating copy rights) but also get my same made up question wrong. A CFA Institute member works for Insecure Securities, Inc., and plays rugby on the firm’s rugby team. Insecure Securities’ team recently played the team of a rival firm. During the game, a fight broke out and the CFA Institute member was the instigator, but no one was seriously hurt. Is this a violation of I(A) concerning maintaining knowledge and complying with laws, rules, and regulations? A) Yes, because the member could have hurt someone in the fight. B) Yes, because the member is bound by the Code of Ethics. C) No, because a fight at a rugby game is not a professional activity. D) No, because no one was seriously hurt. A was incorrect. The correct answer was C) No, because a fight at a rugby game is not a professional activity. Standard I(A) covers members’ professional activity only. Violations outside professional activity that involve fraud, theft or deceit would potentially be violations.
interesting. I thought though saying “profession conduct” in the handbook, the Standards extend to non-professional areas as well? eg. if I have fraud with my personal credit card or if I kill somebody in the rugby, I am still violating 1A? - sticky
Perhaps another standard other than 1A applies to non professional conduct? (such as murder or what not)…
No its B. B/c they are playing on the Firms rugby team it represents the firm. There was another one similar to this. Also Stalla had one where a girl went out with coworkers and got sh!t-faced and it was a violation. I guess when you are doing anything related to work or are out with coworkers you are representing the firm and thus are bound by the ethics.
it is B i agree with willy on explanation.
i agree that B makes more sense…this seems to be a facked up Schweser, er, i mean question that i made up.
^haha I think the providers can’t even make up their mind whether its a violation so they use a costless equity collar and put both questions in to save their a$$.