QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

10. Buta Singh, CFA, has a large extended family and manages the portfolios of

several family members. Singh does not charge the family members a

management fee, but receives a small percentage of each portfolio’s profits.

Singh accepts a position as portfolio manager for Bhotmange Investments to

manage high net worth accounts. Because the family portfolios are not customary

or normal client relationships, Singh does not inform his new employer of his side

activity. Singh is least likely to have violated which CFA Institute Standard of

Professional Conduct?

A. Loyalty.

B. Preservation of Confidentiality.

C. Additional Compensation Agreements.