Skip to content

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

A research analyst discloses a conflict to her employer by stating only that she has "some outside financial interests." Which statement about this disclosure is most accurate under Standard VI(A)?

The disclosure is inadequate. Standard VI(A) guidance requires giving the employer enough information to assess the impact of the conflict. A vague statement about some outside financial interests does not allow that assessment, and neither its timing nor the employer's chance to ask questions fixes this.

  1. AIt is adequate because the employer can ask follow-up questions.
  2. BIt is adequate if it is delivered before any recommendation is issued.
  3. CIt is inadequate because the employer must receive enough information to assess the impact of the conflict.Correct

Explanation

The guidance requires members and candidates to give employers enough information to assess the impact of the conflict. A vague reference does not do this, and timing alone does not cure it. Placing the burden on the employer to ask questions is also contrary to the duty.

Did you get it right without looking?

One question tells you little. A timed set on Guidance for Standard IV: Duties to Employers shows your real accuracy, how long you take and where you lose marks.

Practise Guidance for Standard IV: Duties to EmployersFree diagnostic mock

More Guidance for Standard IV: Duties to Employers questions