Standard III (C) deals with conflicts of interest of a member with ________.
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A. B. C. D. E.B
Standard III (C) deals with conflicts of interest in any actions or decisions of a member with the employer. Remember, all Standards under Standard III deal with the employer.
Standard III (C) of the CFA® Level 1 curriculum addresses conflicts of interest of a member with the client.
The CFA® Institute's Code of Ethics and Standards of Professional Conduct establish guidelines for ethical behavior and professional responsibilities for investment professionals. Standard III (C) specifically focuses on conflicts of interest that may arise between the member (CFA® charterholder or candidate) and their clients.
The objective of Standard III (C) is to ensure that investment professionals always prioritize the interests of their clients and act in a fair and impartial manner. The standard emphasizes the duty of loyalty, prudence, and care towards clients.
Conflicts of interest refer to situations where the personal or professional interests of the member may compromise their ability to act in the best interest of the client. These conflicts can arise due to various factors, such as financial incentives, personal relationships, or affiliations with other organizations.
Option A ("other investment professionals") is not the correct answer. While conflicts of interest can arise between different investment professionals, Standard III (C) specifically focuses on conflicts with the client.
Option B ("none of these answers") is incorrect because conflicts of interest with clients are addressed in Standard III (C).
Option C ("the client") is the correct answer. Standard III (C) is specifically concerned with conflicts of interest between the member and the client. It emphasizes the importance of identifying and disclosing any conflicts and taking appropriate steps to mitigate or manage them.
Option D ("colleagues at the same firm") is not the correct answer. Conflicts with colleagues at the same firm may be addressed by other standards, but Standard III (C) specifically deals with conflicts with the client.
Option E ("the investing public") is not the correct answer. While ensuring the protection of the investing public is a broader objective of the CFA® Institute, Standard III (C) focuses on conflicts of interest with the client rather than the investing public as a whole.
In summary, Standard III (C) addresses conflicts of interest of a member with the client. This standard emphasizes the importance of acting in the best interest of the client, disclosing any conflicts of interest, and taking appropriate measures to manage or mitigate those conflicts.