Cooper is an advisor with W&W Investment Firm and he manages accounts of wealthy clients. This Investment Firm has a policy for advisors to correct within 15 days, all trades with some kind of error and the difference between the trade price and the current price is charged to the advisor´s personal account through an internal error account. Cooper buys a stock for a client and the price of the stock increases the first week and yet Cooper asks the Firm to charge the difference to his personal account because the purchase was in error, and the Firm does so. The advisor then sells the stock and tells the client that he is giving him a gift or no-risk trade.

• a) Cooper´s actions are appropriate because the bank is not harmed by Cooper´s actions.

• b) Cooper´s actions violate the CFA Institute Code and Standards.

• c) Cooper´s actions are appropriate because Cooper is acting for the benefit of the client.