CFA Level I sample question

CFA Level I Standard V(B): Communication with Clients and Prospective Clients question

Ethical and Professional Standards / Standard V(B): Communication with Clients and Prospective Clients

No-login practice

Standard V(B): Communication with Clients and Prospective Clients sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1

Very Difficult

Ethical and Professional Standards

Standard V(B): Communication with Clients and Prospective Clients

A robo-advisory firm changes its asset allocation model to include leveraged ETFs for tactical exposure. Clients receive a notice saying, 'We enhanced the model to improve responsiveness.' The notice omits leverage risks, higher trading costs, and that the service will now charge a model-overlay fee. The communication most likely violates the Standards because it:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.