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CFA Level I · CFA Level I Exam · Guidance for Standard IV: Duties to Employers

A candidate employed by a brokerage receives an email from her supervisor, which she keeps on file, approving a bonus arrangement offered by a client. A colleague argues that Standard IV(B) consent must be on a formal signed paper document. The colleague's view is most likely:

The colleague is incorrect. Under the guidance to Standard IV(B), written consent includes any form of communication that can be documented, such as an email that can be retrieved and documented, so the supervisor's approval email can satisfy the requirement.

  1. Acorrect, because only a signed paper document meets the requirement
  2. Bincorrect, because any form of communication that can be documented, such as a retrievable email, qualifies as written consentCorrect
  3. Ccorrect, because consent must come from the client rather than the employer

Explanation

The guidance states that written consent includes any form of communication that can be documented, for example a retrievable email. Also, the standard requires consent from all parties involved, not from the client alone, so the other options are wrong.

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