Expert Witness Testimony and Compliance with CFA® Level 1 Standard II (C)

Understanding Susan Jackson's Compliance with Standard II (C)

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Question

Susan Jackson, with HRS Investments, is appearing in court as an expert witness. She will have to use research done at HRS, to which she did not contribute directly, during her testimony. Which of the following is true, in relation to Jackson's need to comply with Standard II (C)?

Answers

Explanations

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A. B. C. D. E.

Explanation

Expert witnesses represent themselves, not organizations. Thus, Susan must attribute any of HRS's research to HRS and the team that conducted the research.

According to the information provided, Susan Jackson, an employee of HRS Investments, is appearing in court as an expert witness. She will be using research conducted at HRS Investments, even though she did not directly contribute to that research. The question asks about Jackson's compliance with Standard II (C) of the CFA® Institute's Code of Ethics and Standards of Professional Conduct.

Standard II (C) of the CFA® Institute's Code of Ethics and Standards of Professional Conduct states that CFA® Institute members and candidates must "disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received by or paid to others for the recommendation of products or services."

In this scenario, Jackson is representing herself in court as an expert witness. Therefore, she is not specifically representing HRS Investments. However, it is important to note that the research she will be using during her testimony was conducted at HRS Investments, which is her employer.

Considering this, the correct answer is option A: Jackson is representing herself and may or may not attribute any of HRS's research. This means that Jackson has the discretion to decide whether or not to attribute the research to HRS Investments during her testimony. As she is not representing HRS specifically, there may not be an explicit requirement for her to attribute the research, although it would be recommended to do so for transparency and to uphold professional standards.

It is important to remember that the information provided is specific to the context of the CFA® Level 1 exam and the standards set by the CFA® Institute. In real-world situations, there might be legal or professional guidelines that could influence the appropriate attribution of research in court.