These sample questions were developed to give candidates an indication of the question formats
used on the actual examination.
1. Anthony Buchard, CFA, disclosed a complaint by a former client on his annual professional
conduct statement. The CFA Institute Professional Conduct Program sent Buchard a Notice
of Inquiry and requested a copy of the client complaint. Buchard provided a copy of the
complaint; however, several parts of the complaint were blackened out. Buchard refused to
provide a complete copy of the complaint because it contained confidential client
information. According to the Standards of Practice Handbook, Buchard should:
A. provide a complete copy of the complaint to the Professional Conduct Program.
B. maintain all client information as confidential, including the information contained in the
C. sign a confidentiality agreement with the client that requires Buchard to keep the client
D. disclose only those parts of the complaint that contain information related to the client’s
illegal activities or that are outside the scope of the confidential client relationship.
2. According to the Standards of Practice Handbook, which of the following activities is least
likely to breach a member’s duty to a client?
A. Failing to vote proxies.
B. Failing to establish the investment objectives of the client.
C. Using soft dollar arrangements to pay firm management expenses.
D. Disclosing confidential client information to the CFA Institute Professional Conduct
3. Beth Patrick, a fixed income analyst at a brokerage company, assists her company’s traders
by developing in-house bond ratings to supplement those of the major bond rating services.
The traders use disparities in the ratings to construct profitable investment strategies. Patrick
makes inferences from nonmaterial private information and news events, which she reflects
in her bond ratings. Patrick’s... [continues]
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