Question 11 

In order for a firm to claim compliance under the Global Investment Performance Standards (GIPS), it must define itself as a firm. Which of the following definitions of a firm is least likely to be acceptable under GIPS? 

A) An entity registered with the appropriate national regulatory authority overseeing the entity's investment management activities.

B) An investment firm, subsidiary, or division held out to clients or potential clients as a distinct business unit.

C) A regional branch of an investment firm marketed under the name of its parent.

D) An investment firm that has been in existence for less than five years.

Question 12 

Chip Lawson, CFA, is working on an outside consulting project for which he has not yet been paid. Lawson's supervisor, a CFA charterholder as well, finds out and accuses Lawson of violating Standard IV(A), Loyalty. Lawson disagrees. Which of the following statements regarding this situation is most accurate? 

A) Lawson is correct; no violation has occurred because Standard IV(A) states that in order for a violation to occur, the firm receiving the consulting work must file a complaint with Lawson.

B) The supervisor is correct; a violation has occurred because Lawson could eventually be paid for the project.

C) The supervisor is incorrect because the Loyalty to Employer Standard does not address consulting opportunities.

D) The supervisor is incorrect; no violation has occurred because Lawson has not received compensation.

Question 13 

Pam Devereaux, a Level III CFA candidate, is an investment manager for Belisare Funds. Devereaux directs her trades to Theodora Brokerage, a firm for which Devereaux serves on the board of directors. Devereaux has received consent from Belisare for her board membership at Theodora, but she has not informed her clients of her relationship with Theodora. Devereaux is violating:

A) Standard VI(A), Disclosure of Conflicts, and Standard IV(B), Additional Compensation Arrangements.

B) Standard III(B), Fair Dealing.

C) Standard VI(A), Disclosure of Conflicts.

D) Standard III(B), Fair Dealing, and Standard IV(B), Additional Compensation Arrangements.

Question 14 

Don Wilson and Nadine Chavis, both CFA charterholders, are investment advisors at Uptown Securities. Wilson recommends that one of his clients buy Alpha Company based on research conducted by Uptown. Chavis recommends that one of her clients sell Alpha Company based on research conducted by another brokerage firm for general distribution. Both recommendations are consistent with each client's investment objectives and within the context of their entire portfolios. Neither Wilson nor Chavis has reason to suspect that any information contained in the research reports from these two sources is inaccurate or inadequately supported. According to Standard V(A) Diligence and Reasonable Basis, do Wilson and Chavis have a reasonable basis for making their investment recommendations? 

A) Neither Wilson nor Chavis has a reasonable basis for their recommendations.

B) Both Wilson and Chavis have a reasonable basis for their recommendations.

C) Wilson has a reasonable basis for his recommendation, but Chavis does not.

D) Chavis has a reasonable basis for his recommendation, but Wilson does not.

Question 15 

A member who suspects that a colleague is violating the law should most appropriately: 

A) report the illegal activity to CFA Institute Professional Conduct Program for action.

B) report the illegal activity to the appropriate regulatory agency.

C) consult with the company counsel to determine if in fact a law is being violated.

D) intervene with the colleague and attempt to stop or prevent the illegal activity.

答案和详解如下：

Question 11 

The correct answer was C) A regional branch of an investment firm marketed under the name of its parent. 

The definition of a firm for GIPS-compliant performance presentation should include all geographical offices marketed under the same brand name. 

This question tested from Session 1, Reading 4, LOS b

Question 12 

The correct answer was B)

Money does not have to change hands for a violation to occur. Lawson should have obtained consent from his employer before accepting the consulting work to avoid a violation of Standard IV(A), Loyalty. 

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

Question 13 

The correct answer was C) Standard VI(A), Disclosure of Conflicts. 

Pam is violating Standard VI(A), Disclosure of Conflicts, by directing the trades to Theodora without informing her clients of the conflict of interest. Nothing in the facts indicate that Standard IV(B), Additional Compensation Arrangements, was violated. Standard III(B), Fair Dealing does not apply to this situation. 

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

Question 14 

The correct answer was B) Both Wilson and Chavis have a reasonable basis for their recommendations. 

Wilson and Chavis have a reasonable and adequate basis if they recommend an investment transaction based on sound research prepared by their firm or an independent third party. 

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

Question 15 

The correct answer was C) consult with the company counsel to determine if in fact a law is being violated. 

Standard I(A), Knowledge of the Law, applies in this situation. According to this Standard, members shall not knowingly participate or assist in, and must dissociate from, any violation of laws, rules, or regulations.

When members suspect a client or a colleague of planning or engaging in ongoing illegal activities, members should take the following actions: 

  ♣ Consult counsel to determine if the conduct is, in fact, illegal. 

  ♣ Disassociate from any illegal or unethical activity. When members have reasonable grounds to believe that a client’s or employee’s activities are illegal or unethical, the members should disassociate from these activities and urge their firm to attempt to persuade the perpetrator to cease such activity.  

Note:  The Code and Standards do not require that members report legal violations to the appropriate governmental or regulatory organizations, but such disclosure may be prudent in certain circumstances. 

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

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[此贴子已经被作者于2008-11-25 6:52:57编辑过]

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