Question: Gregor Pavlov, CFA, is a fund manager working for the general partner of a new private equity fund. Pavlov includes in the fund marketing material his performance history from his previous employer. He received permission from his former employer to take his historical return figures and the supporting research reports he used to make the related investment decisions. Did Pavlov most likely violate the CFA Institute Code of Ethics and Standards of Professional Conduct?
My comments: I don’t understand how he violated Record Retention? I thought an analyst can state his performance history as long as he clearly states that it was for a previous employer? In the question, it says nothing about “supporting research” or “data” so how do you assume this?
It’s that sentence right there. I guess having the supporting research reports is not enough - I’m not sure exactly what would constitute as “underlying performance data”… but I asked myself this same question when I took sample exam 2.
But it doesn’t state this in the question. It’s not like his performance was misrepresented. How do we know in the question that he can’t support his returns?
Does it mean that an employee who left the previous firm is not allowed to show his performance history from the previous firm in the marketing material because most likely he doesn’t have the performance data to support his performance because those performance data were owned by his old employer?
Second of all, which sample example are you guys talking about? Is it the one you get from CFAI website but the one you have to pay for?
So if the question doesn’t state anything, it’s assumed he can’t support his performance? This is what the question is based on. If he can support, then he is not in violation; otherwise, he is. But this question doesn’t state anything in regards to that.