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

Under the revision to Standard VI(A) introduced in the twelfth edition of the Handbook, members and candidates are most likely required to:

Standard VI(A) now requires members and candidates to avoid conflicts or make full and fair disclosure of them. Avoidance is preferred when reasonably possible, but when it is not reasonable, clear and complete disclosure remains acceptable. It does not demand avoidance of every conflict.

  1. Aavoid conflicts of interest or make full and fair disclosure of themCorrect
  2. Bdisclose every conflict of interest and never rely on avoidance
  3. Cavoid every conflict of interest, since disclosure alone is no longer sufficient

Explanation

The 2023 revision renamed Standard VI(A) 'Avoid or Disclose Conflicts'. Members must either avoid conflicts or make full and fair disclosure. Avoidance is preferred where reasonably possible, but disclosure remains acceptable when avoidance is not reasonable, so the other options overstate the requirement.

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