Argus is a large- accounts money manager with a high- profile hedge fund. He manages all his accounts in a very efficient manner and all his clients are satisfied with his performance. Argus has one character flaw, though. He is given to making sexually inappropriate comments in mixed company, touching female employees in inappropriate ways and cracking adult jokes loudly. This makes many of the other employees uncomfortable in his presence. Argus

Argus is a large- accounts money manager with a high- profile hedge fund. He manages all his accounts in a very efficient manner and all his clients are satisfied with his performance. Argus has one character flaw, though. He is given to making sexually inappropriate comments in mixed company, touching female employees in inappropriate ways and cracking adult jokes loudly. This makes many of the other employees uncomfortable in his presence. Argus
A . none of these answers.
B . has violated AIMR standard on professional incompetence.
C . has violated AIMR standard on professional conduct.
D . has not violated any AIMR standard since he has kept his clients satisfied and the professional misbehavior is an internal matter to be handled by his superiors.

View Answer

Answer: C

Explanation:

Standard II (B) is designed to address professional behavior and personal integrity. The behavior should not put the firm at risk in any way or reflect adversely on the profession. Argus’s behavior leaves his firm open to sexual harassment lawsuits and in general, reduces the productivity and comfort zone of female employees. Hence, he is in violation of Standard II (B) – Professional Misconduct.