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CFA Level I · CFA Level I Exam · Guidance for Standard VI: Conflicts of Interest

A candidate's firm asks her to deliver a disclosure of a conflict to clients. Under the revised Standard VI(A), the disclosure is most likely adequate if it is:

The disclosure should be prominent, delivered in plain language, and communicate the relevant information effectively. Burying it in an appendix with legal jargon or giving it only on request does not satisfy the revised Standard VI(A) wording.

  1. Aincluded in the firm's annual report appendix using legal terminology
  2. Bprominent, delivered in plain language, and effective in communicating the relevant informationCorrect
  3. Cmade orally to clients on request, provided the firm records the request

Explanation

The standard requires disclosures to be prominent, in plain language, and to communicate the relevant information effectively. An appendix in legal terminology is not prominent or plain, and disclosing only on request is not prominent delivery.

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