Skip to content

CFA Level I · CFA Level I Exam · Guidance for Standard I: Professionalism

A trust investment officer regularly drinks heavily at lunch and then makes investment decisions while clearly intoxicated, and colleagues avoid dealing with him in the afternoon. His conduct most likely:

His conduct violates Standard I(D). Being intoxicated while making investment decisions raises questions about his professionalism and competence and reflects poorly on him, his employer, and the industry. The standard does not require that a client actually lose money for a violation to occur.

  1. Aviolates Standard I(D) because it raises questions about his professionalism and competenceCorrect
  2. Bis acceptable under Standard I(D) because it occurs outside normal office hours
  3. Cviolates Standard I(D) only if a client suffers a measurable financial loss

Explanation

Intoxication while making investment decisions raises questions about professionalism and competence and reflects poorly on the individual, the employer, and the industry. The standard does not require a client loss, and he is making decisions at work after lunch.

Did you get it right without looking?

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

Practise Guidance for Standard I: ProfessionalismFree diagnostic mock

More Guidance for Standard I: Professionalism questions