Reading 2-III: Standards of Professional Conduct & Gui

答案和详解如下：

6、Janet Reilly has just approached Betty Miller, CFA, about purchasing 10,000 shares of Brookshire Co., a newly incorporated real estate development firm. Reilly is a retired schoolteacher living off the income from her late husband's life insurance policy. This investment will represent a significant shift in her investment portfolio. Brookshire Co. is a local firm that has recently received a lot of press concerning some exciting, but speculative projects that they have undertaken in the region. Consistent with the Standards, Miller should:

A)   accept Reilly's order, but have her sign a disclaimer absolving Miller of any potential losses.

B)   not accept the order, because it is not a suitable investment for Reilly.

C)   accept Reilly's order after she acquaints Reilly with the downside risks associated with a risky investment of this type.

D)   not accept the order until Miller has explained to Reilly her education, training, and investing experience.

The correct answer was C)

Members are required to consider the appropriateness and suitability of investment actions for their clients. The needs and circumstances of the client, and the characteristics of the investment and the portfolio must be taken into account. If Reilly understands the risks of this investment and the rest of her portfolio is adequate for her income needs, Miller can proceed to make the investment.

7、Bob Hatfield, CFA, has his own money management firm with two clients. The accounts of the two clients are equal in value. One of the clients gets married and the assets of the new spouse and the client are combined. With the larger portfolio of the now married client, Hatfield determines that they can assume a higher level of risk and begins a change in the policy concerning that portfolio. Which of the following would violate Standard III(C), Suitability?

A)   Assess the time horizon of the newly married client and his spouse.

B)   Implement a similar policy for the other client who did not just get married.

C)   Assess the return objectives of the newly married client and his spouse.

D)   Notify the client of the change in policy and why he is enacting it.

The correct answer was B)

According to Standard III(C), Suitability, the analyst must assess the time horizon, return objectives, tax considerations, and liquidity needs of a client before changing an investment policy. The analyst must notify the client of the new policy. Implementing the policy for the other client may be a violation of the Standard unless that client’s needs are totally reassessed and determined to be identical to the needs of the newly married client.

8、According to CFA Institute Standards of Professional Conduct, when a client asks her portfolio manager to change the current investment strategy of the client’s portfolio, the manager should:

A)   obey the client's request without question.

B)   examine whether the strategy is appropriate for the client and explain the implications of the new strategy before implementing the strategy.

C)   examine whether the strategy is appropriate and inform the SEC if it is not.

D)   explain the implications of the new strategy after the member manager implements the strategy.

The correct answer was B)    

According to Standard III(C), Suitability, the member manager must determine that an investment is suitable given the client’s objectives/constraints and within the context of the client’s total portfolio. . In this case, the member manager must examine the new strategy to see if it is appropriate for the client, even if the client asked for the change. The member should also explain the implications of the strategy to avoid any misrepresentations that may result from omitting details.

9、Karen Jackson is a portfolio manager for Super Selection.  Jackson is friendly with David James, president of AMD, a rapidly growing biotech company. James has provided Jackson with recommendations in the biotech industry, which she buys for her own portfolio before buying them for her clients. For three years, Jackson has also served on AMD's board of directors. She has received options and fees as compensation.

Recently, the board of AMD decided to raise capital by voting to issue shares to the public. This was attractive to board members (including Jackson) who wanted to exercise their stock options and sell their shares to get cash. When the demand for initial public offerings (IPO) diminished, just before AMD's public offering, James asked Jackson to commit to a large purchase of the offering for her portfolios. Jackson had previously determined that AMD was a questionable investment but agreed to reconsider at James' request. Her reevaluation confirmed the stock to be overpriced, but she nevertheless decided to purchase AMD for her clients' portfolios.

Did Jackson violate Standard III(C) concerning Portfolio Recommendations and Actions?

A)   No.

B)   Yes, she did not consider between facts and opinions.

C)   Yes, she did not deal fairly with all clients.

D)   Yes, she did not consider the appropriateness and suitability of investment recommendations or actions for each portfolio or client.

The correct answer was D)    

Jackson violated Standard III(C) because she did not consider her client's financial situation, investment experience, and investment objectives.

10、Carol Hull, CFA, is an investment advisor whose prospective client, Frank Peters, presents special requirements. To construct an investment policy statement for Peters, Hull inquires about Peters’ investment experience, risk and return objectives, and financial constraints. Peters states that he has a great deal of investment experience in the capital markets and does not wish to answer questions about his tolerance for risk or his other holdings. Under Standard III(C), Suitability, Hull:

A)   is permitted to manage Peters’ account without any knowledge of his risk preferences.

B)   must decline to enter into an advisory relationship with Peters.

C)   is required to act as if Peters’ risk tolerance is average.

D)   may accept Peters’ account but may only manage his portfolio to a benchmark or index.

The correct answer was A)

Hull would not violate Standard III(C), Suitability, by managing Peters’ account without knowledge of his risk preferences. She made a reasonable inquiry into Peters’ investment experience, risk and return objectives, and financial constraints, as the Standard requires. If a client chooses not to provide some of this information, the member or candidate can only be responsible for assessing the suitability of investments based on the information the client does provide.