Q1.Which of the following is least likely required of fiduciaries who are responsible for pension plans?

A)   Supporting the sponsor's management during proxy fights.

B)   Judging investments in the context of the total portfolio.

C)   Acting solely in the interest of plan participants.

Q2.All of the following are required by fiduciaries under Standard III(A), Loyalty, Prudence, and Care, EXCEPT:

A)   support the sponsor's management during proxy fights.

B)   act solely in the interest of the ultimate beneficiaries.

C)   place the client’s interest before the employer’s interest.

Q3.Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with River City Brokerage. River City provides Calaveccio with soft dollars to purchase research. River City also deals in municipal bonds, some of which Calaveccio holds in his personal portfolio. He periodically uses the soft dollars to request research reports on various small cap stocks and also on the status of the municipal bond market and issues that he holds. These actions are:

A)   not in violation of the Code and Standards.

B)   in violation of his fiduciary duties regarding both the small cap research and the municipal bond research.

C)   in violation of his fiduciary duties regarding the municipal bond research but not so regarding the research on the small cap issues.

Q4.In order to comply with Standard III(A), Loyalty, Prudence, and Care, an analyst needs to:

A)   perform both of the actions listed here.

B)   liquidate his personal holdings of all stocks that his client owns.

C)   comply with applicable fiduciary duty.

Q5.Which of the following is a possible breach of fiduciary duties by a CFA Institute member who manages assets on behalf of a client?

A)   Using directed brokerage.

B)   Neither of these breach fiduciary duties.

C)   Voting all proxies of stocks the client owns.

答案和详解如下：

Q1.Which of the following is least likely required of fiduciaries who are responsible for pension plans?

A)   Supporting the sponsor's management during proxy fights.

B)   Judging investments in the context of the total portfolio.

C)   Acting solely in the interest of plan participants.

Correct answer is A)

Under Standard III(A) Loyalty, Prudence, and Care, fiduciaries must evaluate management’s proposals during proxy fights to see if they are in the best interest of the plan participants. If management’s ideas are justifiable and reasonably ensure plan participants’ betterment, then fiduciaries can support them. If management is only trying to further its own objectives, especially at the cost of plan participants, then fiduciaries must vote against management in proxy fights.

Q2.All of the following are required by fiduciaries under Standard III(A), Loyalty, Prudence, and Care, EXCEPT:

A)   support the sponsor's management during proxy fights.

B)   act solely in the interest of the ultimate beneficiaries.

C)   place the client’s interest before the employer’s interest.

Correct answer is A)

Members are required to act in the interest of their clients. In voting proxies, the client’s interest must prevail over management’s interest

Q3.Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with River City Brokerage. River City provides Calaveccio with soft dollars to purchase research. River City also deals in municipal bonds, some of which Calaveccio holds in his personal portfolio. He periodically uses the soft dollars to request research reports on various small cap stocks and also on the status of the municipal bond market and issues that he holds. These actions are:

A)   not in violation of the Code and Standards.

B)   in violation of his fiduciary duties regarding both the small cap research and the municipal bond research.

C)   in violation of his fiduciary duties regarding the municipal bond research but not so regarding the research on the small cap issues.

Correct answer is C)

The issue at hand is the member's fiduciary responsibilities in handling "soft dollars" which are technically the property of the client. Standard III(A), Loyalty, Prudence, and Care, delineates the member's fiduciary responsibilities with regards to soft dollars. Since municipal bond research is clearly not relevant to the Small Cap Fund holders, he is clearly using the soft dollars to obtain research for his personal benefit and is in violation of the Standard.

Q4.In order to comply with Standard III(A), Loyalty, Prudence, and Care, an analyst needs to:

A)   perform both of the actions listed here.

B)   liquidate his personal holdings of all stocks that his client owns.

C)   comply with applicable fiduciary duty.

Correct answer is C)

To comply with Standard III(A), the analyst must use reasonable care and exercise prudent judgment, always act for the benefit of clients, and determine and comply with applicable fiduciary duty. Charging some “average” fee is not required.

Q5.Which of the following is a possible breach of fiduciary duties by a CFA Institute member who manages assets on behalf of a client?

A)   Using directed brokerage.

B)   Neither of these breach fiduciary duties.

C)   Voting all proxies of stocks the client owns.

Correct answer is C)

Proxies have economic value to the client. To comply with Standard III(A), the analyst is obligated to vote proxies in an informed and responsible manner. A cost benefit analysis may show that voting all proxies may not benefit the client, so voting proxies may not be necessary in all instances. Directed brokerage occurs when the client requests that a portion of the client's brokerage be used to purchase services that directly benefit the client. Although, this may prevent best execution, it does not violate the Standards as it was directed by the client, not the brokerage firm.

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