Explanation:
Rodrigo's actions are not consistent with Standard V(C) - Record Retention.
Key Issues:
Insufficient Retention Period: The CFA Institute Standards require maintaining records for at least seven years, not five years. This applies regardless of whether there is a firm policy or applicable law.
Required Records: Rodrigo is correctly maintaining:
This demonstrates good practice in maintaining comprehensive records.
Format Requirement: The standard does not require electronic records. Hard copy records are acceptable as long as they are maintained for the required period.
Standard V(C) Requirements:
Correct Approach: Rodrigo should extend his record retention period from five to seven years to comply with the CFA Institute Standards. The hard copy format is acceptable, but the duration must be increased.
Ultimate access to all questions.
Jorge Rodrigo, CFA, is a portfolio manager for Ephesus Securities. Rodrigo maintains records that support his decisions to buy or sell a security. He also maintains records on reviews undertaken which do not lead to a change in his investment positions. Rodrigo maintains all records only in hard copy, for a period of five years. With regard to record retention, Ephesus has no relevant policy and there is no applicable law.
Are Rodrigo's actions consistent with the Standard relating to record retention?
A
Yes
B
No, because Rodrigo must also maintain records in electronic form
C
No, because Rodrigo should maintain records for at least seven years
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