A candidate or member is least likely violating the Standard regarding the con!dentiality of client information if he shares con!dential client information, when not required by law, with:

A)the CFA Institute Professional Conduct Program.

B)the co-owner of the client's account.

C)the client's attorney.

Susan Tigra, CFA, is a portfolio co-manager for the Sandia Energy pension fund. Sandra Bulow, a research analyst under Tigra's supervision, creates a new trading model and immediately begins to trade. Susan stops Bulow from trading, but notes that the!rm has no guidelines for testing new models. Tigra should most likely:

A)encourage her!rm to develop detailed, written guidance that establishes minimum levels of testing for all computer-based models as required by Standard III(C) "Suitability."

B)encourage her!rm to develop detailed, written guidance that establishes minimum levels of testing for all computer-based models as recommended by Standard V(A) "Diligence and Reasonable Basis."

C)report Bulow to the!rm's compliance department for violation of Standard V(A) "Diligence and Reasonable Basis."

May Frost, CFA, is an equity research analyst for a "precious metals mining" exchange traded fund which has recently started signi!cantly outperforming its benchmark after several years of stagnation. Upon investigating the source of the outperformance, Frost learns that the fund has experienced severe style drift, and now has a signi!cant proportion of its resources invested in technology and Internet stocks. Frost reviews the fund's prospectus and learns the current sector weighting violates multiple prospectus covenants. Frost contacts her supervisor and the fund's compliance department and is told the portfolio weighting is not her responsibility and that she should not pursue the matter further. Frost reviews the!rm's whistleblower policy, contacts personal legal counsel, and then contacts regulatory authorities regarding the style drift and prospectus violations. Frost is most likely:

A)in violation of Standard III(E) "Preservation of Con!dentiality."

B)not in violation of the Code and Standards.

C)in violation of Standard IV(A) "Loyalty."

Answer rating: 100% (QA)

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