Q. Nicholas Bennett, CFA, is a trader at a stock exchange. Another trader approached Bennett on the floor of the exchange and verbally harassed him about a poorly executed trade. In response, Bennett pushed the trader and knocked him to the ground. After investigating the incident, the exchange cleared Bennett from any wrongdoing. Which of the following best describes Bennett’s conduct in relation to the CFA Institute Code of Ethics or Standards of Professional Conduct? Bennett:
- did not violate any Code or Standard.
- violated the Professional Misconduct Standard.
- violated both Misconduct and Integrity of Capital Markets Standards.
Solution
B is correct because the CFA Institute Code of Ethics requires members to act with integrity, competence, diligence, respect, and in an ethical and professional manner; the Standards of Professional Conduct relating to Professional Misconduct state members and candidates must not commit any act reflecting adversely on their professional reputation, integrity, or competence. Bennett’s actions violated the Code of Ethics and the Standard relating to Professionalism but not the Standard relating to Integrity of Capital Markets.
