Reading 2- LOS A、B、C- Q11－15 black

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11、Patricia Spraetz is the chief financial officer and compliance officer at Super Selection Investment Advisors.  Super Selection is a medium-sized money management firm which has incorporated the CFA Institute Code of Ethics and Standards of Practice into the firm's compliance manual.

Karen Jackson is a portfolio manager for Super Selection.  She is not a CFA charterholder.  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 but has never notified Super Selection of this fact.  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.

 Which of the following statements is FALSE?

A)   Jackson did not violate Standard III(A) on Fiduciary Duty to clients because she was bound by her fiduciary duty to AMD and its stockholders as a board member. Therefore, when she reversed her decision to buy AMD shares for Super Selection's clients, portfolios on James' request, her obligation to AMD took precedence.

B)   Jackson violated Standard VI(A) regarding Conflicts of interest by not disclosing her board membership and ownership of stock options to her employer.

C)   Jackson violated Standard IV(B) regarding Disclosure of Additional Compensation by not disclosing additional compensation in the form of cash and stock options received from AMD, as its board member to her employer.

D)   Jackson has in the past violated Standard VI(B) on Priority of Transactions by trading ahead of her clients' accounts when she purchased the same shares for her personal account.

12、Marc Feldman, CFA, is manager of corporate investor relations for a high-tech startup, zippy.com, in Boise, Idaho. Feldman learns that Larry Smith, controller, is altering the accounting records. Feldman advises some of his personal friends to sell short zippy.com. This action:

A)   constitutes professional misconduct but not the use of nonpublic information and is a violation of the Code and Standards.

B)   constitutes the use of material nonpublic information and is a violation of the Code and Standards.

C)   constitutes a violation of the Standard concerning prohibition against misrepresentation.

D)   is not a violation of the Code and Standards since Feldman has no way of knowing what the correct accounting numbers are.

13、Rickard Advisors recently had a trading error in a customer account that was subsequently covered by Rickard. The firm felt embarrassed by the disclosure of this error, and, in order to induce the client to continue its relationship, Rickard offers the client preferential access to a new issue that is expected to be “hot.” Which Standard is violated, if any?

A)   The Standard concerning Independence and Objectivity.

B)   The Standard concerning Fair Dealing.

C)   The Standard concerning Fiduciary Duty.

D)   No Standard is violated.

14、John McNeal, CFA, has a friend named Stan Green, a journalist at Investment News, a weekly magazine. In one of their conversations, Green tells McNeal about material nonpublic problems at Brightstar.com, a heavily traded firm. Green has written a special article about Brightstar.com’s problems that will appear in the next issue of Investment News. According to the Standards, can McNeal act on the information Green has shared with him?

A)   Yes, McNeal can trade on the information, because it is already public.

B)   Yes, McNeal can trade on the information but should ask Green to disseminate the information immediately.

C)   Yes, McNeal can trade on the information, because he received it from Green, who has no fiduciary duties.

D)   No, McNeal cannot trade on the information.

15、The Konkol Company implements a new methodology for portfolio valuation that is licensed to them by ABC Statistics. Konkol complies with the CFA Institute Code and Standards by:

A)   discussing the new methodology with the clients, in its entirety.

B)   discussing the new methodology with clients only when in a change in the security selection process is involved.

C)   not discussing the new methodology with clients because it is the property of ABC, which controls all user rights.

D)   not discussing the new methodology with clients because there is no need to, as it will not change their risk and yield preferences.

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答案和详解如下：
11、Patricia Spraetz is the chief financial officer and compliance officer at Super Selection Investment Advisors.  Super Selection is a medium-sized money management firm which has incorporated the CFA Institute Code of Ethics and Standards of Practice into the firm's compliance manual.

Karen Jackson is a portfolio manager for Super Selection.  She is not a CFA charterholder.  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 but has never notified Super Selection of this fact.  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.

 Which of the following statements is FALSE?

A)   Jackson did not violate Standard III(A) on Fiduciary Duty to clients because she was bound by her fiduciary duty to AMD and its stockholders as a board member. Therefore, when she reversed her decision to buy AMD shares for Super Selection's clients, portfolios on James' request, her obligation to AMD took precedence.

B)   Jackson violated Standard VI(A) regarding Conflicts of interest by not disclosing her board membership and ownership of stock options to her employer.

C)   Jackson violated Standard IV(B) regarding Disclosure of Additional Compensation by not disclosing additional compensation in the form of cash and stock options received from AMD, as its board member to her employer.

D)   Jackson has in the past violated Standard VI(B) on Priority of Transactions by trading ahead of her clients' accounts when she purchased the same shares for her personal account.

The correct answer was A)  

Jackson has violated Standard III(A) because her first obligation is to her firm's clients. Standard VI(A) addresses precisely these kinds of situations regarding potential conflict of interest. Given this conflict of interest, Jackson also compromised her objectivity in violation of Standard I(B). Her fiduciary duty to her clients takes precedence over her fiduciary duty to AMD's stockholders under the CFA Institute Code and Standards. By not disclosing her relationship with AMD, she also violated Standard IV(B). Making past personal security transactions ahead of purchase of the same securities for her clients has put Jackson in violation of Standard VI(B). This standard clearly prohibits such actions.

12、Marc Feldman, CFA, is manager of corporate investor relations for a high-tech startup, zippy.com, in Boise, Idaho. Feldman learns that Larry Smith, controller, is altering the accounting records. Feldman advises some of his personal friends to sell short zippy.com. This action:

A)   constitutes professional misconduct but not the use of nonpublic information and is a violation of the Code and Standards.

B)   constitutes the use of material nonpublic information and is a violation of the Code and Standards.

C)   constitutes a violation of the Standard concerning prohibition against misrepresentation.

D)   is not a violation of the Code and Standards since Feldman has no way of knowing what the correct accounting numbers are.

The correct answer was B)  

The information is apparently nonpublic, and is clearly material since the valuation of securities in the market place is predicated upon financial data and other relevant information. Trading or inducing others to trade is a clear violation of Standard II(A).

13、Rickard Advisors recently had a trading error in a customer account that was subsequently covered by Rickard. The firm felt embarrassed by the disclosure of this error, and, in order to induce the client to continue its relationship, Rickard offers the client preferential access to a new issue that is expected to be “hot.” Which Standard is violated, if any?

A)   The Standard concerning Independence and Objectivity.

B)   The Standard concerning Fair Dealing.

C)   The Standard concerning Fiduciary Duty.

D)   No Standard is violated.

The correct answer was B)  

Rickard is in violation of the Standard concerning Fair Dealing by offering the client preferential access to a “hot” new issue. There is no obvious violation of Fiduciary Duty, since there is no evidence that Rickard is placing its own financial interest ahead of the client.

14、John McNeal, CFA, has a friend named Stan Green, a journalist at Investment News, a weekly magazine. In one of their conversations, Green tells McNeal about material nonpublic problems at Brightstar.com, a heavily traded firm. Green has written a special article about Brightstar.com’s problems that will appear in the next issue of Investment News. According to the Standards, can McNeal act on the information Green has shared with him?

A)   Yes, McNeal can trade on the information, because it is already public.

B)   Yes, McNeal can trade on the information but should ask Green to disseminate the information immediately.

C)   Yes, McNeal can trade on the information, because he received it from Green, who has no fiduciary duties.

D)   No, McNeal cannot trade on the information.

The correct answer was D)  

McNeal cannot trade on the information before the article is published. Trading on the information received from the journalist before the magazine is published is trading on material nonpublic information, a breach of Standard II(A).

15、The Konkol Company implements a new methodology for portfolio valuation that is licensed to them by ABC Statistics. Konkol complies with the CFA Institute Code and Standards by:

A)   discussing the new methodology with the clients, in its entirety.

B)   discussing the new methodology with clients only when in a change in the security selection process is involved.

C)   not discussing the new methodology with clients because it is the property of ABC, which controls all user rights.

D)   not discussing the new methodology with clients because there is no need to, as it will not change their risk and yield preferences.

The correct answer was A)  

Standard V(B), Communication with Clients and Prospects, requires any change in the scope, valuation methodology, or focus of the portfolio to be discussed with clients.

[此贴子已经被作者于2008-4-2 11:08:19编辑过]