QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

12. A CFA charterholder is asked to review her firm’s soft dollar practices. As part

of the review, she notes that her firm has failed to disclose the practices to the

firm’s clients in writing as required by law. The charterholder quickly prepares

and distributes the appropriate disclosures. She does not report the firm’s

violation to the appropriate regulatory authority. According to the Standards of

Practice Handbook, by not reporting the violation to the regulatory authority, has

the charterholder violated any CFA Institute Standards of Professional Conduct?

A. No.