You have just been employed as the CFA Institute compliance officer for your firm. The firm, which operates in the financial services area and employs a number of CFA members who are both full Charterholders and others, just like you, currently studying the CFA Program.

Required:

a) Why are the issues of guarantees an important issue for consideration in the interactions between the adviser and the client, particularly in relation to CFA Standard 1 (C)? Briefly justify your conclusions.

b) Recommendations for the firm complying with CFA Standard 1 (C) includes exercising care and due diligence when relying on third-party information. Provide your staff with relevant practical issues to consider when seeking to meet this requirement. Briefly justify your conclusions.

For this question a total word count of approximately 75 words would be expected.