CFA Ethics question 1A

CFA Level I Ethics
#1

Leila Salman works for a firm that advertises its past performance in various periodicals.
Salman discovers that some accounts have left the firm recently and the returns of these
accounts are not included in the promotional material. The omission has led to inflated
performance returns. Salman is asked to use the same material while soliciting clients. By
doing so, Salman will least likely be violating the CFA Institute Standard of:
A. Knowledge of the Law.
B. Misrepresentation.
C. Performance Presentation.

The correct answer given here is A.
So here is my question:
If Leila found out about the omission and still uses the same material isn’t she in violation of 1A too? Or am I missing something?

#2

That depends on what the law says.

Honestly, it’s most likely silent on what they can use in their performance presentation.

#3

i think its misrepresentation coz knowingly presenting the wrong result is violation of standard I (C).

#4

I’m sitting the CFA in November so have not covered the Ethics section yet. However, having read law at undergraduate this appears to be misrepresentation from a contract law point of view.

#5

Ignore ^^

#6

The question says “least likely” , so Leila is most likely violating the standard of misrepresentation or performance presentation as they directly pertain to the context of performance. If Leila is aware of the law and is misrepresenting performance voluntarily (not given in the Question), then she is violating the Knowledge of the law standard. It gets a bit tricky, but just a little bit of digging would get you to the answer. I hope it helped.
Thanks and good luck!