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

For Standard VI(A), a candidate is most likely a beneficial owner of a security if she:

A candidate is most likely a beneficial owner if she has the power to vote or direct the voting of the shares. Beneficial ownership also covers a pecuniary interest or the power to dispose of the security. Research coverage or reading reports creates no ownership interest.

  1. Acovers the issuer as a research analyst.
  2. Bhas the power to vote or direct the voting of the shares.Correct
  3. Chas read the issuer's annual report in full.

Explanation

The standard defines beneficial ownership as having a direct or indirect pecuniary interest, the power to vote or direct voting, or the power to dispose or direct disposition of the security. Covering an issuer or reading its report does not create such an interest.

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