CARLOS CRUZ, CFA, IS ONE OF TWO FOUNDERS OF AN EQUITY HEDGE FUND....

1. Carlos Cruz, CFA, is one of two founders of an equity hedge fund. Cruz manages the fund’s assers while the other co-founder, Brain Burkeman, is responsible for fund sales and marketing. Cruz notices that the most recent sales material used by Burkeman indicates the value of the assets under management in the fund is listed at a higher than actual value. Burkeman justifies the discrepancy by stating that the recent market decline accounts for the difference. To avoid violating the CFA Institute Standards of Professional Conduct, Cruz should least likely take which of the following actions? A. Correct the asset information and provide the update to prospective clients. B. Report the discrepancy to the Professional Conduct Program of CFA Institute. C. Check with the firm’s legal counsel to determine what action should be taken.