) ACCORDING TO CFA INSTITUTE'S STANDARDS OF PRACTICE HANDBOOK, WHICH...

1.) According to CFA Institute's Standards of Practice Handbook, which of the following

additional pieces of information would Litman least likely be required to supply to Twain to

comply with his duty to employer? The:

A.

duration of the investment management agreements with friends.

B.

amount and type of compensation received from friends.

C.

names of his friends who are his clients.

Answer = C

According to the Standards of Practice Handbook IV(B), members should disclose the

terms of any agreement under which a member will receive additional compensation.

Terms include the nature of the compensation, the approximate amount of

compensation, and the duration of the agreement. According to Standard III(E),

members must keep information about current and prospective clients confidential.

Client names would be considered confidential, particularly when tied to the other

previously mentioned information to be given to the employer.

“Guidance for Standards I–VII,” CFA Institute

Standard IV(B)