CFA Level I · CFA Level I Exam · Guidance for Standard VI: Conflicts of Interest
Which statement best describes how disclosures of conflicts should be made under Standard VI(A)?
Disclosures must be prominent, written in plain language, and designed to communicate the information effectively. Standard VI(A) requires this so employers, clients, and prospective clients can evaluate objectivity, so burying conflicts in legal terms or disclosing only on request falls short.
- AProminently, in plain language, and in a manner that effectively communicates the information.Correct
- BAnnually in the firm's filings, using precise legal terminology.
- COnly on request, once a client asks about possible conflicts.
Explanation
Standard VI(A) requires that disclosures be prominent, delivered in plain language, and communicate the relevant information effectively. Members decide frequency and manner, but legal jargon or waiting for a request would not meet the requirement.
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