Question：
Adira Badawi, CFA, who owns a research and consulting company, is an independent board member of a leading cement manufacturer in a small local market. Because of Badawi's expertise in the cement industry, a foreign cement manufacturer looking to enter the local market has hired him to undertake a feasibility study. Under what circumstances can Badawi most likely undertake the assignment without violating the CFA Institute Code of Ethics and Standards of Professional Conduct?
A. He makes full disclosure to both companies.
B. He signs confidentiality agreements with both companies.
C. He receives written permission from the local company.
Answer = A
Making full and fair disclosure of all matters that could reasonably be expected to impair one's independence and objectivity or interfere with respective duties to one's clients is required by Standard VI(A)–Disclosure of Conflicts.
CFA Level I
"Guidance for Standards I–VII"
Standard VI(A)–Disclosure of Conflicts
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权威名师倾情打造，助力通过金融第一考 |
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权威名师倾情打造，助力通过金融第一考 |
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双语教学，助力提升金融专业英语水平 |
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