CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism
A member learns that a colleague is violating applicable securities regulations in a way that clearly breaches the law. Under Standard I(A), the member's most appropriate action is to:
She should dissociate from the violation. Standard I(A) states that members must not knowingly participate or assist in any violation of laws, rules, or regulations and must dissociate from it, so passive silence or participation is inappropriate.
- Adissociate from the violationCorrect
- Bstay silent if she did not personally take part
- Cparticipate if the firm benefits
Explanation
Standard I(A) says members must not knowingly participate or assist in, and must dissociate from, any violation of laws, rules, or regulations. Merely staying silent does not satisfy dissociation, and participating is a direct breach.
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