Ethical and Professional Standards

Leocádia Barbosa-Thorne, CFA, of Ribeira Alta Trust Company manages a trust created by the late Henrique Vasconcelos. The trust holds listed shares and bonds. Under the trust document, his widow receives the trust's income for life, the remaining assets then pass to his grandchildren, and the trustee must balance the interests of both groups. The widow, who is the firm's only contact for the trust, asks Barbosa-Thorne to move the entire portfolio into high-yield bonds to raise her income, even though this is expected to erode the principal. Which of the following actions is least likely consistent with Standard III(A) Loyalty, Prudence, and Care?

The CFA Institute Professional Conduct Program finds that Isidore Kamanzi, a Level II candidate in the CFA Program, brought a page of handwritten formulas into the exam room. Which of the following sanctions can CFA Institute impose on him?

Radim Valenta, an investment consultant, is searching for a global small-cap equity manager for a pension plan client and is comparing candidate firms based in 12 different countries. He shortlists only firms that claim compliance with the Global Investment Performance Standards (GIPS). Which feature of the GIPS standards most directly benefits his search?