CFA Level II Vignettes Ethics Standards Conflicts Interest MCQs Test 2

Practice CFA 2026 Level II Vignettes Ethics Standards MCQs from Conflicts Interest. Get instant results with Explanation.

Practice Quiz 2 for "Conflicts Interest" (Ethics Standards). Total 30 MCQs available, split into 3 quizzes. Test your understanding of core concepts. Mastering these concepts is essential for securing a high percentile in CFA.

General10 MCQs

1. Vignette 3: DisclosureFirst - Patricia Sterling, CFA, recommends a stock to her clients. Sterling serves on the board of directors of the company. She does not disclose this board position. Has Sterling violated the Standards?

A. Acceptable because Sterling discloses her CFA designationB. Acceptable if the company is publicly tradedC. Unacceptable only if the stock underperformsD. Unacceptable because Sterling violated Standard VI(A) by failing to disclose the conflict

2. Sterling receives a commission from a broker for directing client trades to that broker. She does not disclose this arrangement. Which Standard has Sterling violated?

A. Standard VI(A) - Disclosure of ConflictsB. Standard III(A) - Loyalty, Prudence, and CareC. Standard III(C) - SuitabilityD. Standard IV(A) - Loyalty to Employer

3. Sterling recommends an ETF to clients. Sterling personally owns shares of the ETF and will benefit from increased assets under management. She does not disclose this. Which Standard has Sterling violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard VI(A) - Disclosure of ConflictsC. Standard III(C) - SuitabilityD. Standard I(B) - Independence and Objectivity

4. Sterling receives a $10,000 gift from a client whose portfolio she manages. She does not disclose this gift to her employer or clients. Which Standard has Sterling violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard IV(A) - Loyalty to EmployerC. Standard VI(A) - Disclosure of ConflictsD. Standard I(B) - Independence and Objectivity

5. Sterling refers clients to an investment banking firm for private placements and receives a referral fee. She does not disclose this fee. Which Standard has Sterling violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard III(C) - SuitabilityC. Standard IV(A) - Loyalty to EmployerD. Standard VI(A) - Disclosure of Conflicts

General10 MCQs

6. Vignette 4: ConflictManagement - Carlos Rodriguez, CFA, recommends a company's stock to clients. Rodriguez's spouse is a senior manager at the company. Rodriguez does not disclose this relationship. Has Rodriguez violated the Standards?

A. Acceptable because Rodriguez does not personally own the stockB. Unacceptable because Rodriguez failed to disclose the conflict of interest under Standard VI(A)C. Acceptable if the company is a well-known firmD. Unacceptable only if the stock price declines

7. Rodriguez receives a bonus based on the volume of proprietary products sold to clients. He does not disclose this bonus structure to clients. Which Standard has Rodriguez violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard III(C) - SuitabilityC. Standard VI(A) - Disclosure of ConflictsD. Standard IV(A) - Loyalty to Employer

8. Rodriguez recommends a stock to clients in which he holds a large personal position. He does not disclose this. Which Standard has Rodriguez violated?

A. Standard VI(A) - Disclosure of ConflictsB. Standard III(A) - Loyalty, Prudence, and CareC. Standard III(C) - SuitabilityD. Standard I(B) - Independence and Objectivity

9. Rodriguez refers clients to a real estate developer and receives a referral fee. He does not disclose this fee. Which Standard has Rodriguez violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard III(C) - SuitabilityC. Standard IV(A) - Loyalty to EmployerD. Standard VI(A) - Disclosure of Conflicts

10. Rodriguez receives a case of expensive wine (worth $2,000) from a fund manager whose products he recommends. He does not disclose this gift. Which Standard has Rodriguez violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard VI(A) - Disclosure of ConflictsC. Standard IV(A) - Loyalty to EmployerD. Standard I(B) - Independence and Objectivity

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Conducting Body: CFA Institute

Frequency: 4 times a year (February, May, August, November) | Time: 70 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Subject breakdown not available.

Merit Formula: -

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CFA Level II Vignettes Ethics Standards Conflicts Interest MCQs Test 2

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