[2008 CFA level 1模拟真题]Version 1 Questions－Q8 level

8586

8、Charlie Mancini, CFA, is the Managing Director for Business Development at VES Financial (VES), a large U.S.-based mutual fund organization. Mancini has been under pressure recently to increase revenues. In order to secure business from a large hedge fund manager based in Asia, Mancini recently approved unusual terms for the fund's client agreement. To allow for time zone differences, the agreement allows the hedge fund to trade in all of VES's mutual funds six hours after the close of U.S. markets. According to the Standards of Practice Handbook, did Mancini violate any CFA Institute Standards of Professional Conduct?

A. No.

B. Yes, because he traded on non-public information.

C. Yes, because he failed to have legal review the terms of the client agreement.

D. Yes, because he failed to review regulations on late-trading and did not consult with VES's compliance director to determine if late-trading was acceptable.

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Correct answer = D

Standards of Practice Handbook, 9^th edition (CFA Institute, 2005), p. 49
Standard II (B)
2008 Modular Level I, Vol. 1, p. 45
Study Session 1-2-a
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct
The CFA Institute Standard relating to market manipulation requires members/candidates to not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants. Mancini failed to follow regulations on late trading and allowed the hedge fund client to manipulate the time of its trading and thereby mislead other market participants and benefit itself. 

cxz0858

A

louzhuqued

t

zhangxie83

d

Riverview

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刀剑如梦

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gening

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盛夏的果实

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isaisaisa

d