QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.
14. Sheila Schleif, CFA, is an equity analyst at an investment banking division of Mokara Financial
Group, a full service financial group. Schleif uses a multi-factor computer model to make stock
recommendations for all clients of Mokara. Schleif discovers the model contains an error. If the
error were corrected, her most recent buy recommendation communicated to all clients would
change to a sell. Schleif corrects the error, changing the buy to a sell recommendation, and then
simultaneously distributes via e-mail the revision to all investment banking clients who received
the initial recommendation. A week later, Schleif sells the same shares she held in her personal
portfolio. Concerning her actions, Schleif most likely violated which of the following CFA
Institute Standards of Professional Conduct?
A. Fair Dealing
B. Priority of Transactions
C. Diligence and Reasonable Basis