Q1. In accordance with Standard III (A) Loyalty, Prudence and Care, which of the following statements is least accurate? Members and Candidates should:

A)   utilize client brokerage to the sole benefit of the client.

B)   vote all proxies on behalf of clients in a responsible manner.

C)   submit to clients, at least quarterly, itemized statements detailing all of the period’s transactions.

Q2. Liam McCoy has lunch with a wealthy client whose portfolio he manages. McCoy advises the client to double his current position in the JKM Corporation due to an anticipated increase in sales. In accordance with Standard (V) Investment Analysis, Recommendations and Actions, when McCoy returns to his office he should:

A)   identify other clients for whom JKM may be a suitable investment and notify them immediately of his recommendation.

B)   document the details of the conversation with the client with regard to his investment recommendation.

C)   verify the suitability of the investment recommendation before placing the client’s order.

答案和详解如下：

Q1. In accordance with Standard III (A) Loyalty, Prudence and Care, which of the following statements is least accurate? Members and Candidates should:

A)   utilize client brokerage to the sole benefit of the client.

B)   vote all proxies on behalf of clients in a responsible manner.

C)   submit to clients, at least quarterly, itemized statements detailing all of the period’s transactions.

Correct answer is B)

Because of the time and expense involved in voting a proxy, Members and Candidates are not required to vote every proxy. A cost benefit analysis can be performed to determine if it is necessary to vote a proxy.

Q2. Liam McCoy has lunch with a wealthy client whose portfolio he manages. McCoy advises the client to double his current position in the JKM Corporation due to an anticipated increase in sales. In accordance with Standard (V) Investment Analysis, Recommendations and Actions, when McCoy returns to his office he should:

A)   identify other clients for whom JKM may be a suitable investment and notify them immediately of his recommendation.

B)   document the details of the conversation with the client with regard to his investment recommendation.

C)   verify the suitability of the investment recommendation before placing the client’s order.

Correct answer is B)

Standard V(C) Record Retention requires that Members and Candidates document all recommendation and communications with clients. McCoy should document the details of the conversation, including any resulting investment decisions and/or actions. The suitability of the investment should have already been considered before the recommendation and McCoy should not execute the order until the client instructs him to. Identifying other clients for this investment would fall under Standard III(B) Fair Dealing.

thanks.