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NEW QUESTION: 1
Mayberry's Mayor, in consultation with the trustees of Mayberry's Village Investment Fund, has decided that the fund needs to become more aggressive in its investment objectives to generate funds for village renovations like a paved road, a new school and an activity center for kids. He discussed these requirements with the plan manager, Otis, and asked him to suggest a suitable risk profile and investment instruments to achieve the objectives within a year. Barney, a businessman from a neighboring town, is trying to decide if he should invest his excess capital in setting up businesses in Mayberry or another town, Februberry. These businesses promise to generate about 35 new jobs at various levels and stimulate consumer spending in the town in which they are set up. Barney wants to be sure that the businesses are set up in areas that have high growth promise. So he calls up Otis to find out about the Mayor's plans for the next two years for Mayberry's development. Otis sets up a meeting with Barney and outlines the proposed renovation projects. Otis does his best to convince Barney that Mayberry is the right place for Barney's businesses.
I. Barney has violated the Code of Ethics by discussing the plans with Otis.
II. Otis has violated the Code of Ethics by discussing the plans with Barney.
III. Neither Barney nor Otis violated any standards.
A. III only
B. II only
C. I and II only
D. I only
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Otis has violated Standard IV (B.5) - Preservation of Confidentiality by revealing the Mayor's plans to Barney. Any information that Otis receives in his capacity as a fund manager is strictly confidential and should not be revealed unless it is in connection with a criminal investigation or an AIMR investigation.
Barney has not violated any Standards.
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