Question: Tony Roberts, CFA, is a portfolio manager at Delta Sec. He suspects a colleague, who is not a member of candidate, of ongoing activities that, while not illegal under local law, violate CFA Institute Standards of Professional Conduct. Roberts and the colleague both report to the same managing director at Delta and are both currently being considered for a promotion to senior portfolio manager, According to the CFA Institute Standards of Professional Conduct, Roberts: A: Is required to dissociate from the activities that violate the Code and Standards if they continue B: Is not required to act because the Code and Standards do not apply to non-members. C: Must report the suspects violations of the Code and Standards first to his supervisors and then to the CFA Institute.
I answered C, correct answer is A. The solution says: “However, Robets is not required by the Code and the Standards to report violations of laws or the Code and Standars to the CFA Institute or to governmental regulators, although it may be prudent or even required by law that he do so.”
I thought you were required to report to government regulators if required by law?