Standard III (F) Explained

E

There is no Standard III (F).

Standard III (F) of the CFA® Institute's Code of Ethics and Standards of Professional Conduct addresses the "Duty to Employer." The correct answer is F.

This standard outlines the responsibilities that CFA® charterholders and candidates have towards their employers. It emphasizes the importance of loyalty and diligence in serving the employer's interests.

Here's a more detailed explanation of the key points covered under Standard III (F):

1. Fiduciary Duty: CFA® charterholders and candidates have a fiduciary duty to act in the best interest of their employers. They must prioritize the employer's interests over their own when making investment decisions or engaging in professional activities.

2. Loyalty: Professionals covered under this standard should always act with loyalty towards their employers and avoid any actions that could compromise their employer's interests.

3. Diligence and Reasonable Care: CFA® charterholders and candidates must exercise reasonable care and diligence in performing their professional duties for their employers. They should act with skill, competence, and thoroughness, considering the employer's objectives, guidelines, and restrictions.

4. Additional Compensation Arrangements: Standard III (F) also requires individuals to disclose to their employers any additional compensation arrangements that may create conflicts of interest. This includes compensation received from outside sources that may influence their professional judgment or affect their employer's interests.

5. Confidential Information: Professionals covered by this standard should not disclose confidential information about their employers or use it for personal gain. They must respect the confidentiality of information acquired through their employment, unless required by law to disclose or with appropriate authorization.

6. Compliance with Employer's Policies: CFA® charterholders and candidates should comply with their employer's policies and procedures regarding investment activities, conflicts of interest, and professional conduct. If there is a conflict between the employer's policies and the CFA® Institute's Code and Standards, individuals should act in accordance with the stricter rule.

It's important to note that while this answer is accurate based on the information provided, exam questions and answers can vary. It's always recommended to refer to the specific materials and guidelines provided by the exam provider for the most accurate and up-to-date information.