Q24. Sue Parsons, CFA, works full-time as an investment advisor for the Malloy Group, an asset management firm. To help pay for her children’s college expenses, Parsons wants to engage in independent practice in which she would advise individual clients on their portfolios. She would conduct these investment activities only on weekends. Which of the following statements about Standard IV(A), Loyalty to Employer, is most accurate? Standard IV(A):

A)   requires Parsons to obtain written consent from both Malloy and the persons from whom she undertakes independent practice.

B)   requires Parsons to notify Malloy in writing about her intention to undertake an independent practice.

C)   does not require Parsons to notify Malloy of preparing to undertake independent practice under the current conditions.

Q25. Brian Bellow, a CFA Institute member, is a portfolio manager for Progressive Trust Company. Several friends asked Bellow to review their investment portfolios. On his own time, Bellow examined their portfolios and made several recommendations. He received no monetary compensation from his friends for his investment advice and provided no future investment counsel to them. According to CFA Institute Standards of Professional Conduct, did Bellow violate his duty to Progressive Trust?

A)   No, because Bellow received no monetary compensation for his services.

B)   Yes, because he undertook an independent practice that could result in compensation or other benefit to him.

C)   No, because Bellow provided no ongoing investment advice.

答案和详解如下：

Q24. Sue Parsons, CFA, works full-time as an investment advisor for the Malloy Group, an asset management firm. To help pay for her children’s college expenses, Parsons wants to engage in independent practice in which she would advise individual clients on their portfolios. She would conduct these investment activities only on weekends. Which of the following statements about Standard IV(A), Loyalty to Employer, is most accurate? Standard IV(A):

A)   requires Parsons to obtain written consent from both Malloy and the persons from whom she undertakes independent practice.

B)   requires Parsons to notify Malloy in writing about her intention to undertake an independent practice.

C)   does not require Parsons to notify Malloy of preparing to undertake independent practice under the current conditions.

Correct answer is C)

Standard IV(A), Loyalty to Employer, requires that Parsons obtain written consent only from her employer before she undertakes independent practice that could result in compensation or other benefit in competition with Malloy. It is not required to get permission from your employer when only preparing to go into independent practice.

Q25. Brian Bellow, a CFA Institute member, is a portfolio manager for Progressive Trust Company. Several friends asked Bellow to review their investment portfolios. On his own time, Bellow examined their portfolios and made several recommendations. He received no monetary compensation from his friends for his investment advice and provided no future investment counsel to them. According to CFA Institute Standards of Professional Conduct, did Bellow violate his duty to Progressive Trust?

A)   No, because Bellow received no monetary compensation for his services.

B)   Yes, because he undertook an independent practice that could result in compensation or other benefit to him.

C)   No, because Bellow provided no ongoing investment advice.

Correct answer is B)

Standard IV(A) does not preclude providing independent services for compensation while still employed; however, notification to the employer is required describing the type of service, the expected duration, and the compensation. Compensation includes more than just monetary benefits.

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