CFA Level 1 Exam Questions & Answers 2026 (11–20)

Question 1

An analyst plans to leave her firm to start a competing business. Before resigning, Standard IV(A) Loyalty prohibits her from:

TheoryPractice · Accepted Answer

Taking client lists and proprietary models from the employer. Standard IV(A) permits preparing to compete on personal time but prohibits misappropriating the employer's confidential information, client lists, or other property before departure.

Question 2

A client offers a portfolio manager a luxury vacation if the portfolio beats its benchmark. Under Standard IV(B), the manager must:

TheoryPractice · Accepted Answer

Obtain written consent from all parties (the employer) before accepting. Standard IV(B) Additional Compensation Arrangements requires written consent from the employer before accepting compensation or benefits that may create a conflict with the employer's interest.

Question 3

Standard IV(C) Responsibilities of Supervisors requires that a member with supervisory authority:

TheoryPractice · Accepted Answer

Make reasonable efforts to detect and prevent violations by those under supervision. Standard IV(C) requires supervisors to make reasonable efforts to prevent and detect violations, including ensuring adequate compliance procedures are in place and enforced.

Question 4

Standard V(A) Diligence and Reasonable Basis requires that recommendations and actions be supported by:

TheoryPractice · Accepted Answer

Appropriate research and a reasonable and adequate basis. Standard V(A) requires members to exercise diligence, independence, and thoroughness, and to have a reasonable and adequate basis, supported by appropriate research, for any recommendation.

Question 5

Under Standard V(B) Communication with Clients, a member must distinguish between:

TheoryPractice · Accepted Answer

Fact and opinion in presenting analysis. Standard V(B) requires members to distinguish clearly between fact and opinion, disclose the basic process and risks, and identify limitations of the analysis communicated to clients.

Question 6

Standard V(C) Record Retention requires members to maintain records that support their:

TheoryPractice · Accepted Answer

Investment analyses, recommendations, and actions. Standard V(C) requires developing and maintaining records supporting analysis, recommendations, and investment actions; CFA Institute recommends a minimum retention of seven years absent other requirements.

Question 7

Standard VI(A) Disclosure of Conflicts requires a member who owns a large personal stake in a stock he recommends to:

TheoryPractice · Accepted Answer

Prominently disclose the conflict to clients and employer. Standard VI(A) requires full and fair disclosure of all matters that could impair independence and objectivity, such as personal ownership, so clients can judge the conflict for themselves.

Question 8

Standard VI(B) Priority of Transactions requires that investment transactions for clients and employers take priority over:

TheoryPractice · Accepted Answer

Transactions in which a member is a beneficial owner. Standard VI(B) requires client and employer transactions to take priority over transactions in which a member or covered person is a beneficial owner, preventing members from front-running clients.

Question 9

Under Standard VI(C) Referral Fees, a member who receives a fee for referring clients to a service provider must:

TheoryPractice · Accepted Answer

Disclose the referral arrangement to clients and the employer. Standard VI(C) requires disclosure to clients and employers of any compensation or benefit received for, or paid for, recommending products or services, so clients can assess the potential bias.

Question 10

A CFA candidate shares specific essay questions she recalls from the exam on an online forum. This violates:

TheoryPractice · Accepted Answer

Standard VII(A) Conduct as Participants in CFA Programs. Standard VII(A) prohibits conduct that compromises the integrity, validity, or security of CFA Institute programs, including disclosing confidential exam content.

CFA Level 1 Exam Questions & Answers 2026 (11–20)

More CFA Level 1 practice questions

Free practice here. Timed mocks when you are ready.