Alright. My first post this year. After failing L2 last year, it’s been hard to get into this year. I’m about done with the readings (only quant to go) and have done a bit (350) on qbank. But, I’ve half-a$$'d everything. Still plenty of time. Regardless, I thought I would post my first question of the year. I have to start out light… Brian Bellow, a CFA Institute member, is a portfolio manager for Progressive Trust Company. Several friends asked Bellow to review their investment portfolios. On his own time, Bellow examined their portfolios and made several recommendations. He received no monetary compensation from his friends for his investment advice and provided no future investment counsel to them. According to CFA Institute Standards of Professional Conduct, did Bellow violate his duty to Progressive Trust? A) Yes, because he undertook an independent practice that could result in compensation or other benefit to him. B) No, because Bellow received no monetary compensation for his services. C) No, because Bellow provided no ongoing investment advice
B
B?
* double post – sorry
Your answer: B was incorrect. The correct answer was A) Yes, because he undertook an independent practice that could result in compensation or other benefit to him. Standard IV(A) does not preclude providing independent services for compensation while still employed; however, notification to the employer is required describing the type of service, the expected duration, and the compensation. Compensation includes more than just monetary benefits. I’m curious if the Chef For All Institute allows their members to cook for friends and family?