header bg

Question:

Sara Johnson, CFA, overhears one of her co‐workers advising his clients about a new investment recommendation that their firm is about to release. Which of the following actions least likely violates the CFA Institute Standards of Professional Conduct?

A She takes the matter to her supervisor.
Explaination

Sara’s coworker is in violation of Standard III (B): Fair Dealing, because he has informed his clients about the recommendation before any of the firm’s other clients have had a chance to act on it.
• This violation should be brought to the attention of management so that appropriate action may be taken.