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

Marco Silva is an independent contractor who manages a portfolio for a family office under a written agreement. Regarding Standard IV(A) Loyalty, Silva's duties are most likely governed by:

Silva's duties are governed by the agreement between him and the client. Standard IV(A) applies to employment, and an independent contractor's duties are set by the oral or written agreement, which he must define clearly and then follow once the relationship is established.

  1. Athe agreement between Silva and the client.Correct
  2. Bthe policies of the largest firm that he has previously worked for.
  3. Cthe employer-employee rules that apply to all CFA Institute members.

Explanation

Standard IV(A) applies in the employment context, so members must first determine whether they are employees or independent contractors. An independent contractor's duties are governed by the oral or written agreement with the client, and the member must abide by its terms. Former employers' policies and general employee rules do not set these duties.

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