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Answer: telling her manager she cannot cover the company under these constraints.
## Explanation **CFA Standards Analysis:** - **Standard I(B) - Independence and Objectivity**: Requires members to maintain independence and objectivity in their professional activities - **Standard V(A) - Diligence and Reasonable Basis**: Requires investment analysis to have reasonable and adequate basis **Analysis of Options:** - **Option A (Correct)**: Refusing coverage under constraints that compromise objectivity directly upholds Standard I(B) - **Option B**: Escalating concerns is good, but still performing analysis under constraints may violate objectivity - **Option C**: Disregarding manager's instructions could violate employment obligations and firm hierarchy **Key Principle**: When instructions compromise professional independence and objectivity, the most appropriate action is to decline the assignment rather than work under compromised conditions.
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36 Jacque Clemens, CFA, is a securities analyst. Her manager, Samuel Kerouac, currently has a "buy" recommendation on Atlas Semiconductors. Kerouac asks Clemens to take over coverage of Atlas, instructing Clemens that under no circumstances should she change the existing buy recommendation. Clemens believes her manager's instructions have compromised her ability to cover Atlas objectively.
The action for Clemens that would be most consistent with the Standards is:
A
telling her manager she cannot cover the company under these constraints.
B
escalating her concerns to other supervisors in the firm before performing her own analysis.
C
perform her own independent, unbiased analysis and issue her opinion without considering her manager's recommendation.
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