Reading 2-III: Standards of Professional Conduct & Gui

答案和详解如下：

1、While trading on behalf of a pension account, an analyst receives special research reports from the brokerage firm with whom she is doing the trades. Such an activity is:

A)   a violation of both Standard III(A), Loyalty, Prudence, and Care, and the Code of Ethics.

B)   a violation of only The Code of Ethics.

C)   a violation of only Standard III(A), Loyalty, Prudence, and Care.

D)   not in itself a violation of Standard III(A), Loyalty, Prudence, and Care, nor the Code of Ethics.

The correct answer was D)

An analyst can receive research from a brokerage firm with whom she is trading on behalf of a client. The analyst should inform the client of the arrangement. The client is more likely to violate Standard III(A) by obtaining non-research services or, worse yet, personal benefits from the brokerage firm.

2、Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. Calaveccio places a trade with Quantco Brokerage. While Calaveccio's part of the transaction was conveyed correctly to Quantco, there was a trading error made in Calaveccio's account due to a slip up within Quantco. Calaveccio realizes that the error has taken place, and informs his contact at Quantco. Calaveccio allows Quantco to cover the error, with no cost to TrustCo. This is:

A)   a violation of Calaveccio's fiduciary duties.

B)   a violation of the Standard regarding fair dealing.

C)   permissible under CFA Institute Standards since some trading errors are a fact of life in the securities industry.

D)   a violation of Calaveccio's duty to his employer.

The correct answer was C)

The issue is similar to an allocation of soft dollars. Clearly, if the broker absorbs the loss, they expect to make up the difference in some way. However, since the error was on the part of Quantco Brokerage, Calaveccio is under no obligation to cover the cost of the trading error. Moreover, no reasonable observer expects that there exists any implied future allocation of trades to Quantco in return for correcting their own mistake. There is no violation of Standard III(A), Loyalty, Prudence, and Care.

3、An independent analyst has only one client. One of the client’s largest holdings is a brokerage firm. Because of the large holding by his client, the brokerage firm recently began allowing the analyst to tap into the firm’s computer network to use the firm’s research facilities. This is allowable as long as the analyst:

A)   discloses the relationship to the client.

B)   uses the resources to help manage the client's account.

C)   does not put his relationship with the firm before the client.

D)   does all of the actions listed here.

The correct answer was D)

According to Standard III(A), Loyalty, Prudence, and Care, the analyst must put the client first and inform the client of any possible conflicts of interest. The analyst must channel any benefits derived from his service to the client, back to the client, and inform the client of the benefits.

4、An analyst with his own money management firm trades on behalf of several large pension funds. The analyst now performs all trades through a particular brokerage firm because the brokerage provides his firm with a no-interest line of credit if paid within 60 days. The line of credit is available to all brokerage clients. The brokerage provides the analyst with personal account privileges that he would not otherwise be eligible for. The brokerage also provides the analyst with free research reports on many companies. Which of these benefits are violations of Standard III(A), Loyalty, Prudence, and Care?

A)   The research reports.

B)   The no-interest line of credit.

C)   None of these.

D)   The personal account privileges.

The correct answer was D)

The personal account privileges are clearly a violation. The no-interest line of credit could be a violation if the analyst does not factor in the benefits when determining the fees of the clients, but it is not a per se violation. Research reports are least likely to be a violation.

5、Which of the following is a possible breach of fiduciary duties by a CFA Institute member who manages assets on behalf of a client?

A)   None of these breach fiduciary duties.

B)   Using directed brokerage.

C)   Obeying the rules of corporate governance.

D)   Voting all proxies of stocks the client owns.

The correct answer was D)    

Proxies have economic value to the client. To comply with Standard III(A), the analyst is obligated to vote proxies in an informed and responsible manner. A cost benefit analysis may show that voting all proxies may not benefit the client, so voting proxies may not be necessary in all instances. Directed brokerage occurs when the client requests that a portion of the client's brokerage be used to purchase services that directly benefit the client. Although, this may prevent best execution, it does not violate the Standards as it was directed by the client, not the brokerage firm.