1、Ross Nelson, CFA, manages accounts for high net worth clients including his own family's account. He has no beneficial ownership in his family's account. Because Nelson is concerned about the appearance of improper behavior in managing his family's account, when his firm purchases a block of securities, Nelson allocates to his family's account only those shares that remain after allocation to his other client accounts. The fee for managing his family's account is based on his firm's normal fee structure. According to the Standards of Practice Handbook, Nelson's best course of action with regard to management of his family's account would be to: A. continue to manage his family's account but treat it like his other client accounts. B. discontinue management of his family's account and arrange for the account to be transferred to another firm. C. discontinue management of his family's account and arrange for the account to be transferred to another investment manager in his firm. D. continue to manage his family's account and continue his current allocation procedures to avoid the appearance of improper behavior.
Correct answer = A
Standards of Practice Handbook, 9th edition (CFA Institute, 2005), pp. 121-125
Standards I-VII
2008 Modular Level I, Vol. 1, pp. 94-98
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
Nelson should treat his family's account like any other client account. | 
发表于 2008-5-27 11:00
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