QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

9. A CFA charterholder owns an asset management firm with offices downtown. To

minimize rent expenses, each year the charterholder ships the previous year’s

research records to a nearby warehouse. There, the reports are digitized and stored

in both electronic and hard-copy forms. After five years, all paper copies are

destroyed and only electronic copies are retained. Are the charterholder’s record-

retention procedures in compliance with the CFA Institute Standards of Practice?

A. No.

B. Yes, because he is only required to retain hard copies for five years.

C. Yes, because he still retains electronic copies of the original documents.