Which of the following can be found in Standard IV?
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A. B. C. D. E.B
Standard IV states that members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Standard IV of the CFA® (Chartered Financial Analyst®) Code of Ethics and Standards of Professional Conduct covers the topic of "Duties to Employers." This standard sets forth the responsibilities that CFA® charterholders and candidates have towards their employers. Let's go through each answer choice to see which one can be found in Standard IV:
A. Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc. This statement is in line with the ethical requirements outlined in Standard I (Professionalism) of the CFA® Code of Ethics. It emphasizes the importance of integrity and honesty in professional conduct but is not specific to Standard IV.
B. Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions. This statement reflects the responsibilities of CFA® charterholders and candidates to their employers. Standard IV requires members to act with diligence, which includes conducting thorough analysis, gathering relevant information, and ensuring that investment recommendations or actions are well-founded.
C. Members shall not knowingly participate or assist in any violation of laws, rules, or regulations. This statement also aligns with the responsibilities of CFA® charterholders and candidates to their employers. Standard IV requires members to avoid any participation or assistance in activities that violate applicable laws, rules, or regulations. This includes a commitment to promoting a culture of compliance within the organization.
D. Members shall deliver a copy of the Code to their employer. This requirement can be found in Standard VI (Conflicts of Interest) of the CFA® Code of Ethics. Standard IV does not specifically address the obligation to deliver a copy of the Code to the employer.
E. Members shall not misrepresent investment performance. This statement falls under Standard III (Duties to Clients) of the CFA® Code of Ethics. While it is important for members to provide accurate and fair representations of investment performance to clients, it is not specifically mentioned in Standard IV.
Based on the above analysis, the answer that can be found in Standard IV is:
B. Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
Standard IV primarily focuses on the duties and responsibilities of CFA® charterholders and candidates towards their employers, emphasizing the importance of acting diligently, avoiding violations of laws and regulations, and maintaining integrity in professional conduct.