Darth Vader, CFA, will begin a new job next week with a regional brokerage firm. Since this firm employs a number of CFA charterholders, which of the following acts is the "least" that Darth could do on his first day at work, and still not violate the Standards?
a) Even if Darth does nothing, given the firm's apparent acceptance of CFA charterholders, Standard III(A) - Duty to Inform Employer of Code and Standards will not be violated.
b) Simply remind the supervisor that as a CFA charterholder, he is obligated to the same standards as the firm's existing charterholders.
c) Inform his supervisor in writing of his obligation to abide by the Code and Standards and deliver a copy of the Code and Standards for the firm's records.
d) Simply submit in writing of his obligation to abide by the Codes and Standards.


The correct answer is: b)
Standard III(A)- Inform Employer of Code and Standards mandates that a covered person inform his supervisor in writing of his obligation to abide by the Code and Standards and deliver a copy of the Code and Standards for the firm's records. The only exception to this rule is if the firm has publicly stated that it has adopted the Code and Standards as part of its compliance procedure.

2005 LOS: 1.2-1.3.a-1.3.b-1.3.c


  1. The Chairman of Bright Star Life and Casual had a meeting with his broker this afternoon ...

    The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
  2. Which statements about common shareholder rights are FALSE? I. A shareholder may ...

    The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ...
  3. If ABC Company had the following Income Statement figures, what is the Operating ...

    The correct answer is c): The operating margin is a very useful test of the efficiency of corporate management. Operating ...
  4. A customer sells a 6% corporate bond on Tuesday October 4th for regular settlement ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  1. No results found.

You May Also Like

Hot Definitions
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  2. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  4. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  5. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  6. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!