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

An analyst concludes that avoiding a conflict of interest with a client is not reasonable in her industry. Under revised Standard VI(A), the analyst is most likely required to:

The analyst must make clear and complete disclosure of the conflict. Although avoiding conflicts is preferred, the Handbook accepts that it is often not reasonable in the investment industry, and in that case Standard VI(A) continues to require full and fair disclosure rather than resignation or elimination.

  1. Amake clear and complete disclosure of the conflictCorrect
  2. Bresign from covering the client's account
  3. Cseek the conflict's removal before taking any action at all

Explanation

Handbook guidance says that when avoiding a conflict or its perception is not reasonable, Standard VI(A) continues to require clear and complete disclosure. Resignation or full removal is not required by the standard. Avoidance is preferred only where reasonably possible.

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