Reading 2- LOS A、B、C- Q26－30

答案和详解如下：

26、One year ago, Karen Jason left the employment as a portfolio manager of Howe Advisors. The departure was contentious and both parties threatened legal action. As a result, both parties signed a settlement in which Jason was paid a pro rated bonus, but agreed not to work on the portfolios of any existing Howe client for two years. The terms of the agreement were that both parties agreed to keep all aspects of the agreement confidential, including the fact that there was hostility surrounding the departure. Jason now works for Torre Advisors, who has the Stein Company as a new client. At the time Jason left Howe, Stein was a client of Howe, although Jason did not personally work on the Stein portfolio. Jason's supervisor at Torre wants Howe to work on the Stein portfolio. Jason should:

A)   work on the portfolio because she did not personally work on the portfolio when she was at Howe.

B)   inform her supervisor that she cannot work on the portfolio because of a non-compete agreement.

C)   leave the employment of Torre because of a conflict of interest.

D)   inform her supervisor that she cannot work on the portfolio because of a legal agreement, but cannot tell him why.

The correct answer was D)  

Jason must inform her supervisor of the conflict, but she cannot violate the terms of the confidentiality agreement and she cannot work on the portfolio.

27、Jack Harris, a CFA candidate, is a telecommunications analyst at Hasten Securities. Based upon his analysis of Midwest Telecom, he changes his recommendation of the company’s common stock from “hold” to “sell.” Before disseminating his recommendation and the reason for the change to Hasten’s clients, Harris informs several portfolio managers at Hasten, whom he knows personally own Midwest stock, of the changed recommendation. Several days later, Hasten communicates the change in investment recommendation on Midwest to clients known to have bought Midwest and those who currently hold the stock.

Jane White, CFA, is a broker at Hasten Securities. One of her clients places a buy order contrary to the current recommendation on Midwest. After advising her client of the recommendation, she executes the transaction.

According to Standard III(B), Fair Dealing, which of the following statements about Harris and White’s actions is TRUE?

A)   Both Harris and White violated Standard III(B).

B)   Neither Harris nor White violated Standard III(B).

C)   White violated Standard III(B), but Harris did not violate Standard III(B)

D)   Harris violated Standard III(B), but White did not violate Standard III(B).

The correct answer was D)

Harris violated Standard III(B), Fair Dealing by not treating all customers fairly. Instead, he disclosed the information selectively to some of his firm’s portfolio managers. White did not violate Standard III(B) because she communicated to the person placing a buy order on Midwest that the order was contrary to the current recommendation before executing the order.

28、Albert Long, CFA, manages portfolios of high net worth individuals for HKB Corp. Alice Thurmont, one of his close friends, heads a local charity for homeless children that depends on donations to operate. Because donations have declined during the past year, the charity is experiencing financial difficulty. Thurmont asks Long to give her a partial list of his clients so that she can contact them to make tax-deductible donations. Because Long knows that the charity provides much benefit to the community, he provides Thurmont with the requested list.

Betty Short, CFA, also works for HKB Corp. She receives a letter from CFA Institute's Professional Conduct Program (PCP) requesting that she provide information about one of HKB’s clients who is being investigated. Short complies with the request despite the confidential nature of the information requested by the PCP.

Based on Standard III(E), Preservation of Confidentiality, which of the following statements about Long and Short’s actions is TRUE?

A)   Both Long and Short violated Standard III(E).

B)   Neither Long nor Short violated Standard III(E).

C)   Short violated Standard III(E) but Long did not violate Standard III(E).

D)   Long violated Standard III(E) but Short did not violate Standard III(E).

The correct answer was D)

Long violated Standard III(E) because he did not preserve the confidentiality of information communicated by clients. Short did not violate Standard III(E) because this standard does not prevent members from cooperating with an investigation by CFA Institute’s Professional Conduct Program. Thus, Short can forward confidential information to the PCP.

29、Dick Charles is a security analyst with a large brokerage company. Sean Donaldson is a money manager. They both listen in on a conference call for security analysts with the president of Stoppard, Inc., who states that in two days the company will be holding a press conference announcing a new product. Both Charles and Donaldson feel the news will increase the value of Stoppard.

A)   Charles must wait until after the press conference to disseminate the information to clients, and Donaldson must wait until after the press conference to purchase the stock for his clients.

B)   Charles must wait until after the press conference to disseminate the information to clients, but Donaldson can purchase the stock for his clients immediately.

C)   Donaldson must wait until after the press conference to purchase the stock for his clients, but Charles can disseminate the information to clients immediately.

D)   Charles can disseminate the information to clients, and Donaldson can purchase the stock for his clients immediately.

The correct answer was A)  

By waiting until after the press conference the information would then be considered public information and can then be disseminated to clients and traded on without there being any issues of insider trading.

30、Which of the following statements about a member's use of client brokerage commissions is FALSE? Client brokerage commissions:

A)   should be used by the member to ensure that fairness to the client is maintained.

B)   may be used by the member to pay for securities research used in managing the client's portfolio.

C)   should be commensurate with the value of the brokerage and research services received.

D)   may be directed to pay for the investment manager's operating expenses.

The correct answer was D)

Brokerage commissions are the property of the client and may only be used for client benefit.