Ethical Responsibilities: Standard IV (A.3) - CFA® Level 1 Exam Preparation

Putting Corporate Clients on the Dissemination List

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Question

If senior managers are unwilling to permit dissemination of adverse opinions about a particular corporate client, according to Standard IV (A.3), you should attempt to put that corporate client on a ________.

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Explanations

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A. B. C. D. E. F.

B

To avoid violations of Standard IV (A.3), one of the procedures members can enact is to create a restricted list. If senior managers are unwilling to permit dissemination of adverse opinions about a particular corporate client, then the firm should remove the controversial company from the research universe and put it on a restricted list so that the firm disseminates only factual information about the company.