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CFA Level I · CFA Level I Exam · Application of the Code and Standards: Level I

Among the 2023 revisions reflected in the twelfth edition of the Handbook, which change most accurately describes the revision to Standard VI(A)?

Standard VI(A) was renamed Avoid or Disclose Conflicts and revised so members and candidates must either avoid or disclose conflicts of interest. Before, avoidance was not mentioned. Competence is the new Standard I(E), and service and cost disclosures were added to Standard V(B).

  1. AIt was renamed Avoid or Disclose Conflicts and now requires members and candidates to avoid or disclose conflicts of interest.Correct
  2. BIt became a new Standard I(E) requiring members to maintain competence for their professional responsibilities.
  3. CIt added a requirement that members disclose the nature of services provided and the costs to the client.

Explanation

Standard VI(A) was renamed "Avoid or Disclose Conflicts", and previously the standard did not mention avoiding conflicts. The competence change is Standard I(E), and the service and cost disclosure change belongs to Standard V(B).

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