which of the following statements clearly conflicts with the recommended procedures for compliance presented in AIMR’s standard of practice handbook? A) prior approval must be obtained for the personal investment transactions of all employees B) investment recommendations may be changed by an analyst without prior approval of a supervisory analyst why A is the answer not B, can someone explain for me please? thanks,
A) NOT all employees. B) Analysts make the recommendations and they can change them when necessary.
To: Dreary so only when requested, the employee must provide their personal transaction right? thanks so much!!! Dreary Wrote: ------------------------------------------------------- > A) NOT all employees. > B) Analysts make the recommendations and they can > change them when necessary.
In looking at it again, choice “A” does not conflict with the recommended procedures for compliance, so I’m surprised the correct answer is A. It’s not a requirement but it is a recommended procedure that firms establish policies for clearing personal transactions. It’s better if they do that.
Are you sure that this question comes from recent CFA samples? Because it really looks weird that the preclearance procedures recommended by CFA do not apply to question A…
I go with B. Any changes in the investment recomentdations has to have supervisor’s approval.