CFA Level 1: Standard III (A) - True Statements

Standard III (A)

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Question

Regarding Standard III (A), which of the following is true?

Answers

A. If the employer has publicly acknowledged, in writing, adoption of AIMR's Code and Standards as part of its firm policies, then the member need not give formal written notification.

B. A member does not have to notify the supervisor, if the supervisor is a CFA charterholder.

C. Notification must be given to the chief operating officer (or equivalent), orally or in writing.

D. Notification must always be given, orally or in writing.

E. None of these answers is true.

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Explanations

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A. B. C. D. E.

"Members shall inform their employer, in writing, through their direct supervisor, that they are obligated to comply with the Codes and Standards and are subject to disciplinary sanctions for violations thereof." However, if the employer has publicly acknowledged, in writing, adoption of AIMR's Code and Standards as part of its firm policies, then the member need not give formal written notification. Subordinate employees cannot assume that their supervisors are aware of the obligations, even if the supervisors are AIMR members.

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