Reading 2-I: Standards of Profes....Professionalism－LOS b

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

2^#

发表于 2008-9-12 16:09 | 只看该作者

An analyst who is a CFA Institute member receives an invitation from a business associates firm to spend the weekend in a high-quality resort. In order to abide by the Standards, the analyst should (may):

A)	refuse the invitation if the associate is from a firm he analyzes for his employer.

B)	accept if it is a client whose portfolio he manages.

C)	do all of the actions listed here.

D)	obtain written consent from his supervisor regarding the trip.

Answer and Explanation

The analyst must do all of these actions to comply with the Standards. According to Standard I(B), the analyst should refuse the invitation if it is from a firm the analyst covers for his employer. The analyst can accept the invitation if it is from a client and the analyst gets approval from his supervisor according to Standard I(B). According to Standard IV(B), the analyst must receive written consent regarding all monetary compensation and benefits they receive for their services.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

3^#

发表于 2008-9-12 17:30 | 只看该作者

An analyst is told by his supervisor that when he feels he should write a buy recommendation he is free to do so, and when he feels he should write a sell recommendation he should check with the supervisor first. This practice is:

A)	in violation of Standard V(A), Diligence and Reasonable Basis.

B)	congruent with Standard V(A), Diligence and Reasonable Basis.

C)	in violation of Standard I(B), Independence and Objectivity.

D)	prudent since stocks tend to go down only about 3 years in 10.

Answer and Explanation

The policy dictated by the supervisor would infringe upon the analysts independence and objectivity . It would probably discourage the analyst from making sell recommendations and, furthermore, present the opportunity for the supervisor to try and change the analysts mind.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

4^#

发表于 2008-9-12 17:30 | 只看该作者

Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with Worldwide Brokerage. Worldwide is holding a conference in Amsterdam and has offered to pay for Calaveccio's airfare, meals, and accommodations associated with his attendance of the conference. The conference concerns European small cap securities and the EASDAQ. He decides that he will accept their offer and attend the conference. In order to comply with the Code and Standards, he may:

A)	attend, but he must disclose the arrangement to his employer as a gift.

B)	simply attend. Since the conference is directly related to his professional responsibilities, no further notification or permission is required.

C)	attend, but he must disclose the arrangement as additional compensation to his employer in writing.

D)	attend, but he must disclose the arrangement to TrustCo's clients and prospects as required under Standard IV.B.7.

Answer and Explanation

Under Standard I(B) gifts, benefits, and other consideration cannot be accepted if the purpose was to influence or reward. Token items are OK. Worldwide Brokerage is not a client of Calaveccio but an entity that he does business with. As such Worldwide could influence Calaveccio to always do business with them which could be to the detriment of his fund if the execution of their trades starts to deteriorate compared to their competitors.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

5^#

发表于 2008-9-12 17:30 | 只看该作者

An analyst has been writing research reports on a company for many years. As part of the analysts continuing research efforts, the analyst allows the firm to fly him to the firms headquarters and put him up in the guest quarters the company has for all corporate visitors. According to Standard I(B), Independence and Objectivity, this is:

A)	a violation if the headquarters are within reasonable driving distance from the analyst's home.

B)	a violation no matter what the circumstances.

C)	not a violation even if the headquarters are within reasonable driving distance from the analyst's home.

D)	not a violation under any circumstances.

Answer and Explanation

If such a trip is out-of-the-way, payment by the company for the trip is acceptable. If the headquarters are within reasonable driving distance, the analyst should drive there.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

6^#

发表于 2008-9-12 17:31 | 只看该作者

All of the following would be permitted according to the CFA Institute Standards of Professional Conduct EXCEPT:

A)	use of an issuers corporate aircraft when commercial transportation is not available.

B)	business related entertainment that is not intended to influence the recipient.

C)	token gifts received from clients.

D)	air transportation paid by a corporate issuer for travel to a major metropolitan airport.

Answer and Explanation

In order to maintain independence and objectivity, members and candidates should restrict special reimbursement arrangements concerning commercial transportation and hotel charges. Use of corporate aircraft is permitted when commercial transportation is not available.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

7^#

发表于 2008-9-12 17:32 | 只看该作者

According to CFA Institute Standards of Professional Conduct, which of the following is least likely a compliance procedure for maintaining independence and objectivity in making investment recommendations or taking investment action?

A)	Restrict special cost arrangements related to travel.

B)	Create a restricted list so that the firm disseminates only factual information about a controversial company.

C)	Maintain files to support investment recommendations.

D)	Limit gifts to token items only.

Answer and Explanation

Maintaining files to support investment recommendations is not a compliance procedure for Standard I(B): Independence and Objectivity, but it is a compliance procedure for Standard V(C): Record Retention.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

8^#

发表于 2008-9-12 17:32 | 只看该作者

Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with River City Brokerage. River City presents Calaveccio with a bottle of inexpensive wine at Christmas each year. He does not disclose this fact in the prospectus of the small cap venture fund. This action is:

A)	in violation of the Standard concerning independence and objectivity.

B)	in violation of the Standard concerning disclosure of conflicts to clients and prospects.

C)	in violation of the Standard concerning disclosure of additional compensation arrangements.

D)	not in violation of the Code and Standards.

Answer and Explanation

Under Standard I(B) members are advised to "use reasonable care" in order to maintain independence and objectivity. While it is clearly understood that gifts from various entities have the potential to affect a member's independence and objectivity, " token gifts are acceptable, so long as the purpose is not to influence or reward. There is no violation of the Code and Standards.

2011年12月CFA Level I 远程教育培训正在热招...详情请登录：http://eclass.cfaspace.com/

UID: 32503
帖子: 4489
主题: 2162
注册时间: 2006-7-29
最后登录: 2013-3-6

9^#

发表于 2008-9-12 17:33 | 只看该作者

According to CFA Institute Standards of Professional Conduct, which of the following statements about the prohibition against plagiarism is most correct? The prohibition against plagiarism applies to written materials:

only.

B)	and oral communications only.

C)	and telecommunications only.

D)	oral communications, and telecommunications.

Answer and Explanation

The prohibition against plagiarism applies to all three areas.