Reading 3: Standard 6- Conflicts of Interest

Question 1

Conflicts of Interest

Answer 1

Conflicts of Interest are the difference between the needs of the clients, employer, and the CFA charter holder.

Question 2

6A- Disclosure of Conflicts

Answer 2

CFA holders must make it fully known when a conflict of interest has occurred. This means the independence and objectivity have been disrupted.

Question 3

6B- Priority of Transactions

Answer 3

Investment transactions for clients and employers must have PRIORITY over investment transactions in which a Member or Candidate is the beneficial owner.

FAMILY MEMBER ACCOUNTS MUST NOT BE DISADVANTAGED.

Question 4

6C- Referral Fees

Answer 4

All payments/referrals received from someone for recommendations of products or services, should be reported.