QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

11. Praful Chandarana, CFA, is starting a new business to offer investment-consulting services to

pension fund trustees in response to a new regulation that requires all pension fund Investment

Policy Statements (IPS) to be reviewed and approved by an independent CFA Charterholder.

Prior to starting the new business, he meets with the pension fund regulator to clarify if the CFA

Charterholder undertaking the IPS review should be a licensed financial advisor. A separate

regulatory body grants the license to those giving investment advice to clients. The regulator

states they do not require the CFA Charterholder to hold a financial advisor’s license, despite

financial-related advice being given to the pension funds during any IPS review. Chandarana

therefore, starts his new business to undertake IPS reviews without obtaining a financial

advisors license. Subsequently when clients of his former employer contact him he informs

them of his new company and the services he offers. Does Chandarana most likely violate the

CFA Code and Standards?

A. No.

B. Yes, with regard to Professionalism.

C. Yes, with regard to Duties to Employer.