Q6.An analyst with his own money management firm trades on behalf of several large pension funds. The analyst now performs all trades through a particular brokerage firm because the brokerage provides his firm with a no-interest line of credit if paid within 60 days. The line of credit is available to all brokerage clients. The brokerage provides the analyst with personal account privileges that he would not otherwise be eligible for. The brokerage also provides the analyst with free research reports on many companies. Which of these benefits are violations of Standard III(A), Loyalty, Prudence, and Care?
A) The personal account privileges.
B) Neither of these.
C) The research reports.
Q7.An independent analyst has only one client. One of the client’s largest holdings is a brokerage firm. Because of the large holding by his client, the brokerage firm recently began allowing the analyst to tap into the firm’s computer network to use the firm’s research facilities. This is allowable as long as the analyst:
A) does both of the actions listed here.
B) uses the resources to help manage the client's account.
C) discloses the relationship to the client.
Q8.Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in
A) a violation of Calaveccio's duty to his employer.
B) a violation of Calaveccio's fiduciary duties.
C) permissible under CFA Institute Standards since some trading errors are a fact of life in the securities industry.
Q9.While trading on behalf of a pension account, an analyst receives special research reports from the brokerage firm with whom she is doing the trades. Such an activity is:
A) a violation of only The Code of Ethics.
B) not in itself a violation of Standard III(A), Loyalty, Prudence, and Care, nor the Code of Ethics.
C) a violation of both Standard III(A), Loyalty, Prudence, and Care, and the Code of Ethics.
Q10.Alan Cramer, CFA, practices in a country that does not regulate the investment of company retirement plans. He was retained by Bingham Companies to manage their corporate pension plan. Bingham’s management has approached Cramer and requested that Cramer invest the entire plan in Bingham stock.
Cramer may:
A) not invest any of Bingham Company's retirement plan in its own stock regardless of the stock's prospects and in spite of management's request.
B) invest all of the retirement plan assets in Bingham Company stock according to management's request only if Cramer can document that the investment is more prudent than any other investment opportunity he finds.
C) invest a portion of the retirement plan in Bingham Company stock if the investment is prudent and if he keeps the overall portfolio properly diversified.
答案和详解如下：
Q6.An analyst with his own money management firm trades on behalf of several large pension funds. The analyst now performs all trades through a particular brokerage firm because the brokerage provides his firm with a no-interest line of credit if paid within 60 days. The line of credit is available to all brokerage clients. The brokerage provides the analyst with personal account privileges that he would not otherwise be eligible for. The brokerage also provides the analyst with free research reports on many companies. Which of these benefits are violations of Standard III(A), Loyalty, Prudence, and Care?
A) The personal account privileges.
B) Neither of these.
C) The research reports.
Correct answer is A)
The personal account privileges are clearly a violation. The no-interest line of credit could be a violation if the analyst does not factor in the benefits when determining the fees of the clients, but it is not a per se violation. Research reports are least likely to be a violation.
Q7.An independent analyst has only one client. One of the client’s largest holdings is a brokerage firm. Because of the large holding by his client, the brokerage firm recently began allowing the analyst to tap into the firm’s computer network to use the firm’s research facilities. This is allowable as long as the analyst:
A) does both of the actions listed here.
B) uses the resources to help manage the client's account.
C) discloses the relationship to the client.
Correct answer is A)
According to Standard III(A), Loyalty, Prudence, and Care, the analyst must put the client first and inform the client of any possible conflicts of interest. The analyst must channel any benefits derived from his service to the client, back to the client, and inform the client of the benefits.
Q8.Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in
A) a violation of Calaveccio's duty to his employer.
B) a violation of Calaveccio's fiduciary duties.
C) permissible under CFA Institute Standards since some trading errors are a fact of life in the securities industry.
Correct answer is C)
The issue is similar to an allocation of soft dollars. Clearly, if the broker absorbs the loss, they expect to make up the difference in some way. However, since the error was on the part of Quantco Brokerage, Calaveccio is under no obligation to cover the cost of the trading error. Moreover, no reasonable observer expects that there exists any implied future allocation of trades to Quantco in return for correcting their own mistake. There is no violation of Standard III(A), Loyalty, Prudence, and Care.
Q9.While trading on behalf of a pension account, an analyst receives special research reports from the brokerage firm with whom she is doing the trades. Such an activity is:
A) a violation of only The Code of Ethics.
B) not in itself a violation of Standard III(A), Loyalty, Prudence, and Care, nor the Code of Ethics.
C) a violation of both Standard III(A), Loyalty, Prudence, and Care, and the Code of Ethics.
Correct answer is B)
An analyst can receive research from a brokerage firm with whom she is trading on behalf of a client. The analyst should inform the client of the arrangement. The client is more likely to violate Standard III(A) by obtaining non-research services or, worse yet, personal benefits from the brokerage firm
Q10.Alan Cramer, CFA, practices in a country that does not regulate the investment of company retirement plans. He was retained by Bingham Companies to manage their corporate pension plan. Bingham’s management has approached Cramer and requested that Cramer invest the entire plan in Bingham stock.
Cramer may:
A) not invest any of Bingham Company's retirement plan in its own stock regardless of the stock's prospects and in spite of management's request.
B) invest all of the retirement plan assets in Bingham Company stock according to management's request only if Cramer can document that the investment is more prudent than any other investment opportunity he finds.
C) invest a portion of the retirement plan in Bingham Company stock if the investment is prudent and if he keeps the overall portfolio properly diversified.
Correct answer is C)
Standard III(A), Loyalty, Prudence, and Care, requires members to comply with their fiduciary duty. Retirement plan managers owe their duty to the plan participants, not to the management of the company sponsoring the plan. The fiduciary duty includes the obligation to diversify the plan’s investments, regardless of the quality of the sponsoring company’s stock. Investing in the company’s stock is not prohibited.
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