为什么选C

问题如下：

During the conversation between Ngyue and Mercer, Ngyue revealed he had most likely violated which CFA Institute Standards of Professional Conduct?

选项：

A.Standard I: Professionalism B.Standard V: Investment Analysis, Recommendations, and Actions C.Both Standard I: Professionalism and Standard V: Investment Analysis, Recommendations, and Actions

解释：

Solution

1. Incorrect, because both Standards were violated.

2. Incorrect, because both Standards were violated.

3. Correct. It is apparent Ngyue revealed he had violated both Standard I: Professionalism and Standard V: Investment Analysis, Recommendations, and Actions. Specifically, he likely violated Standard I(C): Misrepresentation by making an omission when key-person risk was absent from the fund prospectus. Standard I(C): Misrepresentation requires members and candidates to not knowingly make any misrepresentations relating to investment analysis, recommendations, or actions or other professional activities. Ngyue also violated Standard V(B): Communication with Clients and Prospective Clients in that key-person risk was not initially identified as a significant risk in the prospectus sent to investors. Standard V(B): Communication with Clients and Prospective Clients requires members and candidates to disclose to clients and prospective clients significant limitations and risks associated with the investment process. It appears Ngyue was the only manager, such that another manager needed to be found to replace him while he was recovering from his illness. This type of key-person risk should have been disclosed in the prospectus.

Guidance for Standards I–VII

• demonstrate a thorough knowledge of the CFA Institute Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations