IAR Ethical Standards & Professional Conduct

Question 1

A IAR professional discovers a conflict of interest. What is the MOST ethical action?

Accepted Answer

Disclose immediately and recuse if necessary

Answer

Immediate disclosure protects integrity and stakeholder interests.

Question 2

What is the PRIMARY ethical obligation of a certified Investment Adviser Representative professional regarding confidential information?

Accepted Answer

Protect from unauthorized disclosure at all times

Answer

Confidentiality is a fundamental ethical obligation.

Question 3

When pressured to compromise IAR professional standards, the BEST response is to:

Accepted Answer

Document the pressure and uphold standards

Answer

Documentation creates a record while maintaining ethical integrity.

Question 4

Which scenario violates the Investment Adviser Representative code of professional conduct?

Accepted Answer

Misrepresenting qualifications or certification status

Answer

Misrepresentation undermines public trust and professional integrity.

Question 5

Asked to provide IAR services outside scope of competence, the CORRECT response is to:

Accepted Answer

Decline and refer to a qualified professional

Answer

Working within scope of competence protects client welfare.

IAR Practice Test