Elaine Black, CFA has recently been hired as the Chief Investment Officer at a money management company that does not claim it is in compliance with CFA Institute Soft Dollar Standards. Her former company was in compliance. Which of the following statements concerning CFA Institute Soft Dollar Standards is TRUE? Black: A) cannot use soft dollars to pay for research services except when the commissions originate from principle trades. B) must ignore all provisions set forth in the CFA Institute Soft Dollar Standards except when they are consistent with the Standards of Professional Conduct. C) must abide by the conditions set forth in the Standards of Professional Conduct concerning soft dollars and can chose to accept some of the CFA Institute Soft Dollar Standards. The answer is: C explanation: Black must abide by the Standards of Professional Conduct, but can still follow any of the Soft Dollar Standards that she desires. FACT: ELAINE BLACK MUST ABIDE BY THE SOPC, I UNDERSTAND THAT. QUESTION: ARE CFA SOFT DOLLAR STANDARDS OPTIONAL? …“SHE CAN CHOOSE TO ACCEPT SOME OF THE CFA STANDARDS…” ???
Is it because the money management company does not claim it is in compliance with CFA Institute Soft Dollar Standards that she can “follow any of the soft dollar standards?”
CFA.Rhythm Wrote: ------------------------------------------------------- > Is it because the money management company does > not claim it is in compliance with CFA Institute > Soft Dollar Standards that she can “follow any of > the soft dollar standards?” That’s correct. Soft dollar standards are not mandatory. Black can not be unethical about using soft dollars but she doesn’t have to follow all the soft dollar standards.
I’d just like to point out how wonerful it was to read that question, spend 10 seconds looking for andwer choice “D”… and then remember that it no longer exists.