Answer-first summary for fast verification
Answer: No
**Explanation:** Maria Perez has **not** violated the Standards. Here's why: 1. **Suitability Standard (Standard III.C)**: Perez recognized that the committee's chosen bond fund was not appropriate for all her clients, which shows she was considering suitability. However, when her manager told her she was not permitted to make independent fund purchase decisions, she complied with the firm's policy. 2. **Diligence and Reasonable Basis Standard (Standard V.A)**: Perez conducted her own research and found a better alternative, demonstrating diligence. However, she ultimately followed the firm's established process and used the committee's selection. 3. **Key Factors**: - Perez followed the firm's established procedures and policies - She complied with her manager's directive - The firm has a legitimate process for fund selection (committee with analytical model) - Perez had no reason to question the committee's research process - She ultimately used the committee's selection for all clients 4. **Professional Conduct**: Perez acted appropriately by: - Raising her concerns about suitability - Conducting her own research - Following the firm's established procedures when told to do so - Not making unauthorized investment decisions **Conclusion**: Perez followed the firm's policies and procedures, which is required under the Standards. She did not violate any CFA Institute Standards of Professional Conduct.
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Maria Perez, CFA, is a portfolio manager for an advisory firm that utilizes external mutual funds. The firm has a committee that selects external funds, using an analytical model to determine their choices. Although Perez has no reason to question the committee's research process, she does not like the committee's choice for a bond fund because it is not appropriate for all her clients. She researches and selects a different bond fund that better meets her clients' needs, but her manager tells her that she is not permitted to make independent fund purchase decisions. She then invests in the fund chosen by the committee for all of her clients. Has Perez most likely violated the Standards?
A
No
B
Yes, the Standard relating to suitability
C
Yes, the Standard relating to diligence and reasonable basis
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