According to AIMR’s Standards of Professional Conduct Standard I(B), Fundamental Responsibilities, members shall not knowingly participate or assist in legal and ethical violations. An analyst: A) must report all legal violations to the proper regulatory commission and is held responsible for participating in illegal acts when the law is evident to anyone knowing the law. B) is held responsible for violations by others when the analyst is unaware of the facts giving rise to the violation. C) is held responsible for participating in illegal acts when the law is evident to anyone knowing the law and can participate in a violation by having knowledge of the violation and taking no action to stop it or disassociate from it. D) is held responsible for participating in illegal acts when the law is evident to anyone knowing the law and is held responsible for violations by others when the analyst is unaware of the facts giving rise to the violation.
A
C
hmm, i’m going to guess C) is held responsible for participating in illegal acts when the law is evident to anyone knowing the law and can participate in a violation by having knowledge of the violation and taking no action to stop it or disassociate from it.
C
A What I don’t like about other choices: B: “… unaware of the facts giving rise to violation” C: “… can participate in violation by having knowledge of the violation” D: “…unaware of the facts giving rise to violation”
C
The answer is c, don’t know why. Here’s another tricky one. Which of the following statements about the AIMR?Code and Standards is TRUE? The Code and Standards: A) require that members report legal violations to the appropriate governmental or regulatory organization. B) do not require that members report legal violations to the appropriate governmental or regulatory organization. C) expect members to resign from their jobs to disassociate themselves from clients engaging in illegal activities. D) expect members to persuade the perpetrator to cease illegal activities.
pepp Wrote: ------------------------------------------------------- > The answer is c, don’t know why. > the answer is C because being aware of a violation AND not disassociating yourself is a violation > Here’s another tricky one. > > Which of the following statements about the > AIMR?Code and Standards is TRUE? The Code and > Standards: > A) require that members report legal violations to > the appropriate governmental or regulatory > organization. > B) do not require that members report legal > violations to the appropriate governmental or > regulatory organization. > C) expect members to resign from their jobs to > disassociate themselves from clients engaging in > illegal activities. > D) expect members to persuade the perpetrator to > cease illegal activities. D) expect members to persuade the perpetrator to cease illegal activities.
B