AMANDA COVINGTON, CFA, WORKS FOR MCJAN INVESTMENT MANAGEMENT. MCJA...
13. Amanda Covington, CFA, works for McJan Investment Management. McJan employees must receive prior clearance of their personal investments in accordance with McJan's compliance
procedures. To obtain prior clearance, McJan employees must provide a written request identifying
the security, the quantity of the security to be purchased, and the name of the broker through which
the transaction will be made. Precleared transactions are approved only for that trading day. As
indicated below, Covington received prior clearance.
Security Quantity Broker Prior Clearance
A 100 Easy Trade Yes
B 150 Easy Trade Yes
Two days after she received prior clearance, the price of Stock B decreased, so Covington decided to
purchase 250 shares of Stock B only. In her decision to purchase 250 shares of Stock B only, did
Covington violate any CFA Institute Standards of Professional Conduct?
A. No
B. Yes, relating to diligence and reasonable basis
C. Yes, relating to her employer's compliance procedures