Q6. Chris Babcock, CFA, a portfolio manager for a large Texas investment firm, has been offered compensation in addition to what her firm pays her. The offer is from one of her clients and the additional compensation will be based on her yearly performance in excess of the market index. Babcock should:

A)   make written disclosure to all parties involved before she accepts this offer.

B)   turn down the offer because it represents a clear conflict between this client and Babcock's other clients.

C)   make written disclosure to her other clients before she accepts this offer.

Q7. An analyst needs to inform his supervisor in writing of which of the following?

A)   A client and the analyst alternate paying for lunch at a local sandwich shop.

B)   Both the lunch and the bonus mentioned in the other answers.

C)   An annual bonus, sent to the analyst by a client, which varies with the performance of the client's portfolio that the analyst manages as an employee even though no verbal or written agreement exists about the bonus.

Q8. Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with Worldwide Brokerage. Worldwide suggests to Calaveccio that they are willing to provide him with additional compensation for order flow. Is this permissible under the Code and Standards?

A)   Yes, if he receives written consent from TrustCo and discloses the arrangement to his clients and prospects.

B)   Yes, if he discloses the arrangement in writing to TrustCo.

C)   No, such an arrangement is in violation of the Code and Standards.

Q9. David Saul, CFA, heads the trust department at Savage National Bank. Fairway Enterprises invites Saul to sit on its Board of Directors. In return for his services on the Board, Fairway offers to provide Saul and his family with access to the facilities at Wilmont Country Club at no cost. Saul will not receive any monetary compensation for his services on the Board. According to CFA Institute Standards of Professional Conduct, which of the following actions must Saul take?

A)   Saul must disclose in writing to Savage Bank the terms of the offer whether or not he accepts the offer to serve on the Board of Directors.

B)   Saul must reject the offer to serve on the Board of Directors.

C)   Saul must obtain written consent from all parties to only if he decides to accept the offer to serve on the Board of Directors.

Q10. Jill Marsh, CFA, works for Advisors where she manages various portfolios. Marsh’s godfather is an accountant and has done Marsh’s tax returns every year as a birthday gift. Marsh’s godfather has recently become a client of Advisors and asked specifically for Marsh to manage his account. In order to comply Standard IV(B), Disclosure of Additional Compensation Arrangements, she needs to:

A)   have her godfather cease doing her taxes.

B)   do neither of the actions listed here.

C)   liquidate from her personal portfolio any stocks her godfather owns and verbally tell her supervisor about the tax services.

答案和详解如下：

Q6. Chris Babcock, CFA, a portfolio manager for a large Texas investment firm, has been offered compensation in addition to what her firm pays her. The offer is from one of her clients and the additional compensation will be based on her yearly performance in excess of the market index. Babcock should:

A)   make written disclosure to all parties involved before she accepts this offer.

B)   turn down the offer because it represents a clear conflict between this client and Babcock's other clients.

C)   make written disclosure to her other clients before she accepts this offer.

Correct answer is A)

Standard IV(B), Additional Compensation Arrangements, applies in this situation. Standard IV(B) states, “No gifts, benefits, compensation, or consideration are to be accepted with may create a conflict of interest with the employer’s interest unless written consent is received from all parties.”
The key words here are "written consent" - members must obtain written consent because such arrangements may affect loyalties and objectivity and create potential conflicts of interest.

Q7. An analyst needs to inform his supervisor in writing of which of the following?

A)   A client and the analyst alternate paying for lunch at a local sandwich shop.

B)   Both the lunch and the bonus mentioned in the other answers.

C)   An annual bonus, sent to the analyst by a client, which varies with the performance of the client's portfolio that the analyst manages as an employee even though no verbal or written agreement exists about the bonus.

Correct answer is C)

Standard IV(B) requires that members disclose to their employer in writing all benefits that they receive in addition to their regular compensation for services they perform on behalf of their employer. Since the bonus varies with the performance of the client’s portfolio, there is a clear link to the services of the analyst. The analyst is not required to report the lunch since it is not linked to performance.

Q8. Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with Worldwide Brokerage. Worldwide suggests to Calaveccio that they are willing to provide him with additional compensation for order flow. Is this permissible under the Code and Standards?

A)   Yes, if he receives written consent from TrustCo and discloses the arrangement to his clients and prospects.

B)   Yes, if he discloses the arrangement in writing to TrustCo.

C)   No, such an arrangement is in violation of the Code and Standards.

Correct answer is A)

In conformance with Standard IV(B) Additional Compensation Arrangements, Calaveccio is required to obtain written consent from TrustCo, his employer. In conformance with Standard VI(C) Referral Fees, he is also required to disclose the additional compensation to clients and prospects. Written permission from his clients and prospects is unnecessary.

Q9. David Saul, CFA, heads the trust department at Savage National Bank. Fairway Enterprises invites Saul to sit on its Board of Directors. In return for his services on the Board, Fairway offers to provide Saul and his family with access to the facilities at Wilmont Country Club at no cost. Saul will not receive any monetary compensation for his services on the Board. According to CFA Institute Standards of Professional Conduct, which of the following actions must Saul take?

A)   Saul must disclose in writing to Savage Bank the terms of the offer whether or not he accepts the offer to serve on the Board of Directors.

B)   Saul must reject the offer to serve on the Board of Directors.

C)   Saul must obtain written consent from all parties to only if he decides to accept the offer to serve on the Board of Directors.

Correct answer is C)

Standard IV(B) requires that members obtain written consent from all parties involved before accepting monetary compensation or other benefits that they receive for their services that are in addition to compensation or benefits conferred by a member's employer. In this situation, Saul may also be obligated to disclose his participation on Fairway's Board to clients, prospective clients, and employer under Standard VI(A), Disclosure of Conflicts.

Q10. Jill Marsh, CFA, works for Advisors where she manages various portfolios. Marsh’s godfather is an accountant and has done Marsh’s tax returns every year as a birthday gift. Marsh’s godfather has recently become a client of Advisors and asked specifically for Marsh to manage his account. In order to comply Standard IV(B), Disclosure of Additional Compensation Arrangements, she needs to:

A)   have her godfather cease doing her taxes.

B)   do neither of the actions listed here.

C)   liquidate from her personal portfolio any stocks her godfather owns and verbally tell her supervisor about the tax services.

Correct answer is B)

Standard IV(B) requires that members disclose to their employer in writing all benefits that they receive in addition to their regular compensation for services they perform on behalf of their employer. It is not unreasonable for an individual’s godfather to give them a birthday gift. Moreover, since the tax services were a regular birthday present before her godfather became a client, this implies that they are unrelated to any investment management services.

report

thanks

谢谢~

谢谢