~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
Alan Brown, an investment advisor, wants to set up his own firm. He is making all the legal arrangements to do so
during his free time. His current employer is not aware of his activities. He is also informing all his current clients about
his new venture and offering them discounts to do business with his new firm. Which of the following is most
accurate?
A. Alan is violation the standards, as he is setting up a new business during his free time
B. Alan is violating the standards, as he is setting up a new business and soliciting the clients of his current employer.
C. Alan is violating the standards by soliciting the clients of his current employer.
C. Alan is violating the standards by soliciting the clients of his current employer.
Dinah Bonnevie, CFA, was elected to the board of directors of a worldwide charitable organization with the written
consent of her employer. The organization has recently started a fund‐raising campaign for a vaccination program in
Africa. Knowing that most of her clients make regular charitable donations, she includes a section in her regular
newsletter covering her directorship with the charity and the fund‐raising campaign. Did Bonnevie violate Standard
III(E) Preservation of Confidentiality?
No
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
In the event that local law is in conflict with GIPS, firms must:
comply with local law and disclose the nature of the conflict.
Lana Torres, CFA, is a founder of her own private investment advisory practice serving senior clients with high net
worth. Since inception, Torres has always invested her clients' money in blue‐chip stocks with high dividends. With the
recent boom of technology stocks, Torres determined that the technology stocks will have a better return for her
clients in the medium term and allocated a portion of her clients' assets into the small‐cap technology stocks that she
has done thorough analysis on. She plans to inform clients of this change in her next market commentary in three
months. Did Torres violate any CFA Institute Standards?
Yes, because she did not inform her client about the change in the investment process promptly.
Joe is in charge of a very large equity management firm that does a significant amount of trading with soft‐dollar
commissions. At the end of the year, what percent of the soft‐dollar commissions is he allowed to pay out in annual
bonuses to his employees?
0%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
During an internal meeting, Jack O'Neil, CFA, who is the fund manager of the firm, had a disagreement with an analyst
on one of the stock picks. At the end, Jack stated that the analyst must listen to him because he is a CFA charter holder
and therefore knows better. Did Jack violate any of the CFA Institute Standards of Professional Conduct according to
the Standards of Practice Handbook?
Yes, he violated the standard pertaining to Responsibilities as a CFA Institute Member.
Firm X, because of portfolio underperformance relative to its stated benchmark, decides to switch to a passive asset
management strategy and does not inform its clients.
At Firm Y, where individual asset managers are responsible for security selection, a new policy is implemented in
which only stocks on an approved list constructed by the firm's senior manager may be purchased for client accounts.
Several portfolio managers do not inform their respective clients.
Firm Z recently changes its external manager of property investments and provides information of this change in the
firm's annual report where external advisers are listed. The annual report is due for publication in seven months.
Which firm(s) violated Standard V(B)?
Firm Y and Firm Z
A firm's culture that promotes loyalty to the firm over its clients is an example of:
A situational influence
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
Toby Green, CFA, works in an equity brokerage department at Mulberry Securities. Green has reviewed a report from
the firm's research department that suggests Crown Appliances is rated a "buy" because the sales figures for the firm's
new products have been better than those of the closest competition. Green lives on the same street as the CFO of
Crown Appliances. While waiting for the train to work, Green accidentally overheard the chief financial officer of
Crown Appliances report to his colleague on a mobile phone about an announcement in the morning newspaper that
a competitor has just launched a website for appliance distribution over the Internet. Upon returning to his office,
Green tipped his father to sell his holding based on this new information, but he still recommends a "buy" to all
Mulberry's clients. Green:
Was in full compliance with the Code and Standards.
Rafi Binder is an oil industry analyst at a brokerage firm. He recently read an article in the Wall Street Journal
describing a research study that analyzed global oil reserves. Binder thinks this study would provide insight into the
long‐term movement of oil prices and wants to quote the study in a research report he is preparing. Using the Journal
article to identify the author as Dr. Rangoon of State University, Binder obtained a copy of the original research study
and used several excerpts in his oil industry report. In citing the source of the excerpts, Binder must credit:
Wall Street JournalThe Original Study
A.Yes No
B.No Yes
C.Yes Yes
Row B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
Alan Brown, an investment advisor, wants to set up his own firm. He is making all the legal arrangements to do so
during his free time. His current employer is not aware of his activities. He is also informing all his current clients about
his new venture and offering them discounts to do business with his new firm. Which of the following is most
accurate?
A. Alan is violation the standards, as he is setting up a new business during his free time
B. Alan is violating the standards, as he is setting up a new business and soliciting the clients of his current employer.
C. Alan is violating the standards by soliciting the clients of his current employer.
C. Alan is violating the standards by soliciting the clients of his current employer.
Dinah Bonnevie, CFA, was elected to the board of directors of a worldwide charitable organization with the written
consent of her employer. The organization has recently started a fund‐raising campaign for a vaccination program in
Africa. Knowing that most of her clients make regular charitable donations, she includes a section in her regular
newsletter covering her directorship with the charity and the fund‐raising campaign. Did Bonnevie violate Standard
III(E) Preservation of Confidentiality?
No
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
In the event that local law is in conflict with GIPS, firms must:
comply with local law and disclose the nature of the conflict.
Lana Torres, CFA, is a founder of her own private investment advisory practice serving senior clients with high net
worth. Since inception, Torres has always invested her clients' money in blue‐chip stocks with high dividends. With the
recent boom of technology stocks, Torres determined that the technology stocks will have a better return for her
clients in the medium term and allocated a portion of her clients' assets into the small‐cap technology stocks that she
has done thorough analysis on. She plans to inform clients of this change in her next market commentary in three
months. Did Torres violate any CFA Institute Standards?
Yes, because she did not inform her client about the change in the investment process promptly.
Joe is in charge of a very large equity management firm that does a significant amount of trading with soft‐dollar
commissions. At the end of the year, what percent of the soft‐dollar commissions is he allowed to pay out in annual
bonuses to his employees?
0%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
During an internal meeting, Jack O'Neil, CFA, who is the fund manager of the firm, had a disagreement with an analyst
on one of the stock picks. At the end, Jack stated that the analyst must listen to him because he is a CFA charter holder
and therefore knows better. Did Jack violate any of the CFA Institute Standards of Professional Conduct according to
the Standards of Practice Handbook?
Yes, he violated the standard pertaining to Responsibilities as a CFA Institute Member.
Firm X, because of portfolio underperformance relative to its stated benchmark, decides to switch to a passive asset
management strategy and does not inform its clients.
At Firm Y, where individual asset managers are responsible for security selection, a new policy is implemented in
which only stocks on an approved list constructed by the firm's senior manager may be purchased for client accounts.
Several portfolio managers do not inform their respective clients.
Firm Z recently changes its external manager of property investments and provides information of this change in the
firm's annual report where external advisers are listed. The annual report is due for publication in seven months.
Which firm(s) violated Standard V(B)?
Firm Y and Firm Z
A firm's culture that promotes loyalty to the firm over its clients is an example of:
A situational influence
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@
CFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@
Toby Green, CFA, works in an equity brokerage department at Mulberry Securities. Green has reviewed a report from
the firm's research department that suggests Crown Appliances is rated a "buy" because the sales figures for the firm's
new products have been better than those of the closest competition. Green lives on the same street as the CFO of
Crown Appliances. While waiting for the train to work, Green accidentally overheard the chief financial officer of
Crown Appliances report to his colleague on a mobile phone about an announcement in the morning newspaper that
a competitor has just launched a website for appliance distribution over the Internet. Upon returning to his office,
Green tipped his father to sell his holding based on this new information, but he still recommends a "buy" to all
Mulberry's clients. Green:
Was in full compliance with the Code and Standards.
Rafi Binder is an oil industry analyst at a brokerage firm. He recently read an article in the Wall Street Journal
describing a research study that analyzed global oil reserves. Binder thinks this study would provide insight into the
long‐term movement of oil prices and wants to quote the study in a research report he is preparing. Using the Journal
article to identify the author as Dr. Rangoon of State University, Binder obtained a copy of the original research study
and used several excerpts in his oil industry report. In citing the source of the excerpts, Binder must credit:
Wall Street JournalThe Original Study
A.Yes No
B.No Yes
C.Yes Yes
Row B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@@22/2026//2027
!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&############################@@@@@@@@@@@@@@@
CFA final examCFA final exam!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~&&&&&&&&#####################
