Q1. A CFO who is a CFA Institute member is careful to make his press releases—some of them containing material and previously undisclosed information—clear and understandable to his readers. While writing a new release, he often has his current intern proofread rough drafts. He also sends electronic copies to his brother, an English teacher, to get suggestions concerning style and grammar. With respect to Standard II(A), Material Nonpublic Information, the CFO is:

A)   not in violation of the Standard.

B)   only in violation by e-mailing the pre-release version to his brother but not the intern, because the intern is in essence an employee of the firm.

C)   violating the standard by either showing the pre-release version to his intern or sending it to his brother.

Q2. A brokerage firm has a trading department and an investment-banking department. Often the investment-banking department receives material non-public information that would be valuable in advising the firm’s brokerage clients. In order to comply with the Standards, the firm:

A)   should record the exchange of information between the investment-banking department and the brokerage department.

B)   should restrict employee trading in securities for which the firm is in possession of material non-public information.

C)   must divest one of the departments.

Q3. Don Benjamin, CFA, is the compliance officer for a large brokerage firm. He wants to prevent the communication of material nonpublic information and other sensitive information from his firm’s investment banking and corporate finance departments to its sales and research departments. The most common and widespread approach that Benjamin can use to prevent insider trading by employees is the:

A)   fire wall.

B)   Wall Street Rule.

C)   legal list.

[此贴子已经被作者于2009-1-6 17:49:11编辑过]

答案和详解如下：

Q1. A CFO who is a CFA Institute member is careful to make his press releases—some of them containing material and previously undisclosed information—clear and understandable to his readers. While writing a new release, he often has his current intern proofread rough drafts. He also sends electronic copies to his brother, an English teacher, to get suggestions concerning style and grammar. With respect to Standard II(A), Material Nonpublic Information, the CFO is:

A)   not in violation of the Standard.

B)   only in violation by e-mailing the pre-release version to his brother but not the intern, because the intern is in essence an employee of the firm.

C)   violating the standard by either showing the pre-release version to his intern or sending it to his brother.

Correct answer is C)

Standard II(A), Material Nonpublic Information, says that a member must be careful about handling material non-public information. As a member of CFA Institute, the CFO must limit the people who see important information before it is released. It would not be appropriate to involve an intern or a relative in the process.

Q2. A brokerage firm has a trading department and an investment-banking department. Often the investment-banking department receives material non-public information that would be valuable in advising the firm’s brokerage clients. In order to comply with the Standards, the firm:

A)   should record the exchange of information between the investment-banking department and the brokerage department.

B)   should restrict employee trading in securities for which the firm is in possession of material non-public information.

C)   must divest one of the departments.

Correct answer is B)

Restricting employee trading in stocks for which the firm has material non-public information is the best answer. Recording the exchange of information between the two departments is not the best option because there should be no exchange of information between these two departments. Divesting a department is not a suitable method for addressing this potential problem.

Q3. Don Benjamin, CFA, is the compliance officer for a large brokerage firm. He wants to prevent the communication of material nonpublic information and other sensitive information from his firm’s investment banking and corporate finance departments to its sales and research departments. The most common and widespread approach that Benjamin can use to prevent insider trading by employees is the:

A)   fire wall.

B)   Wall Street Rule.

C)   legal list.

Correct answer is A)

To comply with Standard II(A), a fire wall provides an information barrier that prevents communication of material nonpublic information and other sensitive information from one department to another within a firm.