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Answer: Yes, for failing to adhere to her employer's compliance procedures.
**Explanation:** Covington violated **Standard VI(B) - Priority of Transactions** by not following her employer's compliance procedures. The prior clearance process is designed to prevent conflicts of interest, and members are required to comply with their employer's policies. While option A is incorrect because she did violate the Standards, option B is incorrect as there is no evidence of a violation of **Standard V(A) - Diligence and Reasonable Basis**. The correct answer is **C**, as the violation pertains to non-compliance with the employer's procedures.
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Amanda Covington, CFA, works for McJan Investment Management. McJan employees must receive prior clearance for personal investments as per the firm's compliance procedures. The clearance requires a written request specifying the security, quantity, and broker. Pre-cleared transactions are valid only for the trading day. Covington received prior clearance for two transactions but later purchased 250 shares of Stock B without clearance. Did Covington violate any CFA Institute Standards of Professional Conduct in this action?
A
No, Covington did not violate any Standards.
B
Yes, due to a lack of diligence and reasonable basis.
C
Yes, for failing to adhere to her employer's compliance procedures.
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