Q25. The CFA Institute Standards of Practice Handbook requires CFA Institute members to do all the following EXCEPT:

A)   receive written permission from both their employer and outside clients to engage in investment consulting outside the firm.

B)   to disclose in writing to the proper regulatory authority all observed violations of the securities laws and regulations.

C)   to inform employer, clients, and potential clients of benefits received for recommending products or services.

Q26. Bob Smith, CFA, is an outside board member of Atlantic Technologies, but is not paid by the firm for his services. An employee at Atlantic informs Smith that Atlantic has improperly timed the booking of contracts to achieve the desired quarterly financial results. The misleading financial statements would turn losses into profits. Smith confers with the firm's legal counsel who indicates that this conduct is, in fact, illegal. Smith urges Sharon White, Atlantic's chief operating executive, to change the financial statements, but she refuses to do so. According to CFA Institute Standards of Professional Conduct, which of the following statements best describes what Smith should do in this situation?

A)   Smith should promptly disassociate himself from Atlantic's actions by resigning as a director or by reporting the activities to the appropriate authorities.

B)   Smith should immediately make CFA Institute aware of the situation at Atlantic.

C)   Smith should wait until the next board meeting, which is scheduled in two weeks, to make other board members aware of the situation.

Q27. Deloris Johnson, CFA, suspected that her intern, who was working without pay at her brokerage firm, had violated a federal securities regulation. Johnson discussed the matter with her company's legal counsel who said that the intern's conduct was illegal. According to the CFA Institute Code and Standards of Professional Conduct, Johnson can dissociate herself from this illegal activity by:

A)   transferring supervision of the intern to another person.

B)   telling her intern to stop such conduct.

C)   reporting the activity to the appropriate authorities.

答案和详解如下：

Q25. The CFA Institute Standards of Practice Handbook requires CFA Institute members to do all the following EXCEPT:

A)   receive written permission from both their employer and outside clients to engage in investment consulting outside the firm.

B)   to disclose in writing to the proper regulatory authority all observed violations of the securities laws and regulations.

C)   to inform employer, clients, and potential clients of benefits received for recommending products or services.

Correct answer is B)

Members are not required to report violations of others to regulatory authorities, either verbally or in writing, but such reporting may be prudent.

Q26. Bob Smith, CFA, is an outside board member of Atlantic Technologies, but is not paid by the firm for his services. An employee at Atlantic informs Smith that Atlantic has improperly timed the booking of contracts to achieve the desired quarterly financial results. The misleading financial statements would turn losses into profits. Smith confers with the firm's legal counsel who indicates that this conduct is, in fact, illegal. Smith urges Sharon White, Atlantic's chief operating executive, to change the financial statements, but she refuses to do so. According to CFA Institute Standards of Professional Conduct, which of the following statements best describes what Smith should do in this situation?

A)   Smith should promptly disassociate himself from Atlantic's actions by resigning as a director or by reporting the activities to the appropriate authorities.

B)   Smith should immediately make CFA Institute aware of the situation at Atlantic.

C)   Smith should wait until the next board meeting, which is scheduled in two weeks, to make other board members aware of the situation.

Correct answer is A)

Smith should disassociate from any illegal activity by resigning as a director or by reporting the activities to appropriate authorities. Inaction combined with continuing association with Atlantic's illegal conduct may be construed as participation, or assistance, in the illegal conduct.

Q27. Deloris Johnson, CFA, suspected that her intern, who was working without pay at her brokerage firm, had violated a federal securities regulation. Johnson discussed the matter with her company's legal counsel who said that the intern's conduct was illegal. According to the CFA Institute Code and Standards of Professional Conduct, Johnson can dissociate herself from this illegal activity by:

A)   transferring supervision of the intern to another person.

B)   telling her intern to stop such conduct.

C)   reporting the activity to the appropriate authorities.

Correct answer is C)

Johnson can dissociate herself from the illegal activity by reporting the activity to the appropriate authorities. However, the Code and Standards do not require that she report legal violations to the appropriate governmental or regulatory organizations, but such disclose is prudent in this circumstance.

By transferring the intern to another supervisor this may not solve the problem of the illegal activity occurring and the company would still be held liable for it.