medium · CFA Level I ethics
An investment committee at Vesper Foods decides to add Oakridge Capital to the firm's 'Approved Buy List' for all discretionary accounts. Before the list is published, a committee member buys Oakridge Capital shares for her personal account, noting that she 'drafted the purchase order a week ago.'
Does this satisfy Standard VI(B)?
- No, because the timing of execution must follow the dissemination to clients.
- Yes, because the decision to buy was independent of the committee's final approval.
- Yes, as long as she discloses the trade to her supervisor within 24 hours of execution.
Sign up free to see the explanation and track your rank →
More CFA Level I ethics practice
- If she sells the stock for her personal account before the report is public, she has:
- Vesper Foods Investment Management has a policy to notify all clients of a 'Sell' rating v
- A trader at Vesper Foods learns from an internal IT error that the firm's quarterly revenu
- An advisor at Oakridge Capital is managing an account for hi… — The advisor should treat t
- The trader should:
- Which professional control is mandated for CFA candidates when using AI outputs?
- According to Standard VI(B) Priority of Transactions, which statement best describes Julia
- Under Standard VI(B) Priority of Transactions, the manager should: