exam questions

Exam CFA® Level 1 All Questions

View all questions & answers for the CFA® Level 1 exam

Exam CFA® Level 1 topic 1 question 82 discussion

Actual exam question from Test Prep's CFA® Level 1
Question #: 82
Topic #: 1
[All CFA® Level 1 Questions]

Standard IV (B.5), Preservation of Confidentiality states:

  • A. all of these answers.
  • B. none of these answers.
  • C. members must release information to AIMR when the Professional Conduct Program is holding an investigation, unless there is a settlement agreement between the parties that stipulates confidentiality.
  • D. if the information is confidential, even illegal activity may not be reported, because there is the issue of trust between parties.
  • E. members should avoid disclosing any information received from a client except to authorized fellow employees who are also working for the client.
Show Suggested Answer Hide Answer
Suggested Answer: E 🗳️
Under Standard IV (B.5), members shall preserve the confidentiality of information communicated by clients within the scope of client-member or employer- member relationship, except when the member receives information concerning illegal activity on the part of the client. When there is an investigation under PCP, members shall provide information about a client in support of the investigation. Settlement agreements with confidentiality clauses do not prohibit members from cooperating with a PCP investigation.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
KAla7223
1 year, 11 months ago
The Standard IV (B.5), Preservation of Confidentiality states that a CFA Institute member or candidate must maintain the confidentiality of client information and may only use that information for the benefit of the client. The member or candidate must not disclose confidential client information unless: (1) the client consents, (2) the disclosure is required by law, or (3) the member or candidate reasonably believes it is necessary to prevent harm to the client or the public. The member or candidate must also take reasonable steps to ensure that confidential client information is protected from unauthorized use or disclosure by individuals under their supervision.
upvoted 1 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago