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Answer: Yes, Liu has violated the Standard relating to misconduct.
## Explanation **Correct Answer: C** - Yes, Liu has violated the Standard relating to misconduct. **Analysis:** 1. **Standard I(D): Misconduct** states that members and candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit, or commit any act that reflects adversely on their professional reputation, integrity, or competence. 2. **Key Considerations:** - Liu was **arrested and convicted** for obstructing public transit - This is considered an act of civil disobedience in her country - Even though the demonstrations were nonviolent and for a cause (climate change), the conviction itself reflects adversely on Liu's professional reputation - The Standards apply to both professional and personal conduct that reflects on one's professional reputation 3. **Why not Option A?** - A conviction for obstructing public transit, even for civil disobedience, constitutes misconduct under Standard I(D) because it reflects adversely on professional reputation - The Standards don't make exceptions for political or social causes 4. **Why not Option B?** - Standard III(A): Loyalty, Prudence, and Care relates to duties to clients, not personal conduct - Liu's actions don't involve breach of duty to clients or employers 5. **Important Distinction:** - Organizing nonviolent demonstrations itself might not violate the Standards - However, being **convicted** of a crime (even for civil disobedience) crosses the line into misconduct under Standard I(D) - The conviction creates a public record that reflects adversely on professional reputation **Conclusion:** Liu has violated Standard I(D): Misconduct because her conviction for obstructing public transit reflects adversely on her professional reputation, even though the act was intended as civil disobedience for a social cause.
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Feng Liu, CFA, is an investment manager. Liu organizes nonviolent demonstrations on weekends to fight climate change. After repeated demonstrations, Liu is arrested and convicted for obstructing public transit which is considered an act of civil disobedience in her country. Has Liu violated the Standards?
A
No.
B
Yes, Liu has violated the Standard relating to loyalty.
C
Yes, Liu has violated the Standard relating to misconduct.
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