Question 6

Kevin Blank, CFA, is a representative for Campbell Advisors. In a meeting with a prospective client, the client inquires about investing in bonds denominated in Mexican pesos. Blank assures the client that Campbell can help him with Mexican fixed income investing. In fact, Blank had heard that his colleague, Jon Woller, might have had experience in Mexican bonds. The following day Blank learns that Woller had, in fact, no such experience. Blank does not correct his earlier statement and the prospective client invests with Campbell. Blank has:

A)    only violated the Code and Standards when he learned that his statement was incorrect and did not contact the prospect to explain his error.

B)   violated the Code and Standards, both when he misrepresented the qualifications of his firm and later, when he learned the truth and failed to contact the prospective client and correct his earlier statement.

C)   not violated the Code and Standards because Blank did not intentionally mislead the prospect.

D)   not violated the Code and Standards because Blank's statements were verbal and not in writing.

Question 7

Joey Balder, CFA, was approached by the management of Flagship Investment Managers about becoming Flagship’s Southtown branch supervisor. Balder is reluctant to accept the position because certain compliance procedures have not been adopted in that branch. To comply with the Standards, Balder should most appropriately:

A)    discuss his concerns with management and tell them he will not accept the position unless and until he is given authority over compliance procedures.

B)   accept the position on condition that the procedures be adopted immediately.

C)   accept the position and use his best efforts to get the procedures implemented as soon as possible.

D)   decline in writing to accept the supervisory position until the firm adopts appropriate procedures.

Question 8

Which of the following is least likely required of members and candidates by the CFA Institute Code of Ethics?

A)    Encourage others to practice in a professional manner.

B)   Disclose to clients and prospects the basic principles of their investment processes.

C)   Strive to improve the competence of other investment professionals.

D)   Place client interests above their own.

Question 9

Abner Flome, CFA, is writing a research report on Paulsen Group, an investment advisory firm. Abner’s brother-in-law holds shares of Paulsen and Abner has recently interviewed for a position with Paulsen and expects a second interview. According to the Standards, Abner’s most appropriate action is to disclose:

A)    his brother-in-law’s holding of Paulsen and the job offer to his supervisor and in the research report if he writes it.

B)   his brother-in-law’s holding of Paulsen to his supervisor and in the research report if he writes it.

C)   neither his brother-in-law’s holdings nor the job offer to his supervisor or in the report if he writes it.

D)   the fact that he is being considered for a job at Paulsen to his supervisor and in the research report if he writes it.

Question 10

James Copley, a pension fund manager and a CFA charterholder, has an agreement with a brokerage firm to give him lower transactions costs on his personal brokerage in exchange for directing the pension fund's trades to the brokerage firm. Copley is most likely violating which of the following Standards?

A)    Standard III(A), Loyalty, Prudence, and Care.

B)   Standard III(B), Fair Dealing.

C)   Standard V(A), Diligence and Reasonable Basis.

D)   Standard V(B), Communication with Clients and Prospective Clients.

[此贴子已经被作者于2008-11-8 10:39:21编辑过]

答案和详解如下！

Question 6

Kevin Blank, CFA, is a representative for Campbell Advisors. In a meeting with a prospective client, the client inquires about investing in bonds denominated in Mexican pesos. Blank assures the client that Campbell can help him with Mexican fixed income investing. In fact, Blank had heard that his colleague, Jon Woller, might have had experience in Mexican bonds. The following day Blank learns that Woller had, in fact, no such experience. Blank does not correct his earlier statement and the prospective client invests with Campbell. Blank has:

A)    only violated the Code and Standards when he learned that his statement was incorrect and did not contact the prospect to explain his error.

B)   violated the Code and Standards, both when he misrepresented the qualifications of his firm and later, when he learned the truth and failed to contact the prospective client and correct his earlier statement.

C)   not violated the Code and Standards because Blank did not intentionally mislead the prospect.

D)   not violated the Code and Standards because Blank's statements were verbal and not in writing.

The correct answer was B) violated the Code and Standards, both when he misrepresented the qualifications of his firm and later, when he learned the truth and failed to contact the prospective client and correct his earlier statement.

Standard I(C), prohibits members from making statements, orally or in writing, that misrepresent the services that they or their firms are capable of providing. Even though Blank’s statement was not deliberately false, he did not know whether it was true or not, and this made the statement misleading. Once it was evident that the statement was false, Blank had a duty to contact the prospect and correct the misrepresentation, but did not do so.

This question tested from Session 1, Reading 2-I, LOS C.

Question 7

Joey Balder, CFA, was approached by the management of Flagship Investment Managers about becoming Flagship’s Southtown branch supervisor. Balder is reluctant to accept the position because certain compliance procedures have not been adopted in that branch. To comply with the Standards, Balder should most appropriately:

A)    discuss his concerns with management and tell them he will not accept the position unless and until he is given authority over compliance procedures.

B)   accept the position on condition that the procedures be adopted immediately.

C)   accept the position and use his best efforts to get the procedures implemented as soon as possible.

D)   decline in writing to accept the supervisory position until the firm adopts appropriate procedures.

The correct answer was D) decline in writing to accept the supervisory position until the firm adopts appropriate procedures.

Standard IV(C) Responsibilities of Supervisors requires that if a member cannot discharge compliance responsibilities because of a poor compliance system, the member should decline in writing to accept supervisory responsibility until the firm adopts an adequate system.

This question tested from Session 1, Reading 2-IV, LOS C.

Question 8

Which of the following is least likely required of members and candidates by the CFA Institute Code of Ethics?

A)    Encourage others to practice in a professional manner.

B)   Disclose to clients and prospects the basic principles of their investment processes.

C)   Strive to improve the competence of other investment professionals.

D)   Place client interests above their own.

The correct answer was B) Disclose to clients and prospects the basic principles of their investment processes.

Disclosing the basic characteristics of their investment processes is a requirement of Standard V(B) – Communication with Clients and Prospective Clients. The other choices are all drawn from the Code of Ethics.

This question tested from Session 1, Reading 1, LOS b, (Part 1)

Question 9

Abner Flome, CFA, is writing a research report on Paulsen Group, an investment advisory firm. Abner’s brother-in-law holds shares of Paulsen and Abner has recently interviewed for a position with Paulsen and expects a second interview. According to the Standards, Abner’s most appropriate action is to disclose:

A)    his brother-in-law’s holding of Paulsen and the job offer to his supervisor and in the research report if he writes it.

B)   his brother-in-law’s holding of Paulsen to his supervisor and in the research report if he writes it.

C)   neither his brother-in-law’s holdings nor the job offer to his supervisor or in the report if he writes it.

D)   the fact that he is being considered for a job at Paulsen to his supervisor and in the research report if he writes it.

The correct answer was D) the fact that he is being considered for a job at Paulsen to his supervisor and in the research report if he writes it.

The job offer creates a potential conflict of interest and Abner must disclose it. Standard VI(A)–Disclosure of Conflicts does not require disclosure of his brother-in-law’s ownership of Paulsen stock.

This question tested from Session 1, Reading 2-VI, LOS A.

Question 10

James Copley, a pension fund manager and a CFA charterholder, has an agreement with a brokerage firm to give him lower transactions costs on his personal brokerage in exchange for directing the pension fund's trades to the brokerage firm. Copley is most likely violating which of the following Standards?

A)    Standard III(A), Loyalty, Prudence, and Care.

B)   Standard III(B), Fair Dealing.

C)   Standard V(A), Diligence and Reasonable Basis.

D)   Standard V(B), Communication with Clients and Prospective Clients.

The correct answer was A) Standard III(A), Loyalty, Prudence, and Care.

According to Standard III(A), Loyalty, Prudence, and Care, Copley is violating his fiduciary duty by benefiting, potentially at the expense of his clients, from the lower transactions cost on his personal trades. Members must act for the benefit of their clients and place their clients’ interests before their own.

This question tested from Session 1, Reading 2, LOS a, b, c

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