
Explanation:
Correct Answer: C - Yes, Liu has violated the Standard relating to misconduct.
Analysis:
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.
Key Considerations:
Why not Option A?
Why not Option B?
Important Distinction:
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.