CFA Level 1: Standard IV (B.7) - Conflicts of Interest on Board of Directors

Basic Conflict of Interest on Board of Directors

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Question

According to Standard IV (B.7), Disclosure of Conflicts, service on a board of directors poses which of the following as a basic conflict of interest?

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Explanations

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A. B. C. D. E.

C

Under Standard IV (B.7), service as a director poses all three statements as basic conflicts of interest. Hence, when members providing investment service serve also as directors, they should be isolated from those making investment decisions by the use of Fire Walls or similar restrictions.

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