Q5. An analyst has a large personal holding of a security, and he has just determined that market conditions warrant selling this security. The analyst contacts clients who have a position in the security and advises them to sell some or all of the security. After waiting 24 hours, he sells the security from his personal accounts. This is:

A)   congruent with Standard VI(B), Priority of Transactions.

B)   a violation of Standard VI(B), Priority of Transactions.

C)   a violation of Standard III(B), Fair Dealing.

Q6. An unpaid intern at an investment firm has the task of photocopying unannounced investment recommendations after all regular employees have left for the day. With respect to Standard VI(B), Priority of Transactions, the firm:

A)   cannot be in violation because Standard VI(B) does not address this issue.

B)   is acting appropriately by having an unpaid intern do the job.

C)   is probably violating the Standard.

Q7. A firm produces regular proprietary research reports on various companies. According to Standard VI(B), Priority of Transactions, which of the following would be an “access person?”

A)   An independent auditor with access to material, non-public information on a company being analyzed.

B)   A supervisory analyst who reviews all research reports prior to dissemination.

C)   A person working in the mail room.

Q8. Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of:

A)   his clients.

B)   both of these.

C)   his employer.

答案和详解如下：

Q5. An analyst has a large personal holding of a security, and he has just determined that market conditions warrant selling this security. The analyst contacts clients who have a position in the security and advises them to sell some or all of the security. After waiting 24 hours, he sells the security from his personal accounts. This is:

A)   congruent with Standard VI(B), Priority of Transactions.

B)   a violation of Standard VI(B), Priority of Transactions.

C)   a violation of Standard III(B), Fair Dealing.

Correct answer is A)

According to Standard VI(B), an analyst must give clients the first opportunity to buy or sell a security before the analyst acts on his own behalf. A 24-hour waiting period seems reasonable under the circumstances presented. The analyst seems to have a reasonable basis, and there is no reason to believe that he is violating Standard III(B) since he contacted all of the clients who have a position in the security.

Q6. An unpaid intern at an investment firm has the task of photocopying unannounced investment recommendations after all regular employees have left for the day. With respect to Standard VI(B), Priority of Transactions, the firm:

A)   cannot be in violation because Standard VI(B) does not address this issue.

B)   is acting appropriately by having an unpaid intern do the job.

C)   is probably violating the Standard.

Correct answer is C)

Among other things, Standard VI(B) covers how the firm keeps unannounced information confidential. At a minimum, the intern should be supervised by someone familiar with the Code and Standards. The firm needs to have adequate procedures for preventing the dissemination of information before it is released to the public. One method of doing so is to limit the number of access persons privy to confidential information. An intern should not be an access person.

Q7. A firm produces regular proprietary research reports on various companies. According to Standard VI(B), Priority of Transactions, which of the following would be an “access person?”

A)   An independent auditor with access to material, non-public information on a company being analyzed.

B)   A supervisory analyst who reviews all research reports prior to dissemination.

C)   A person working in the mail room.

Correct answer is B)

Persons with access to information during the normal preparation of research recommendations are subject to Standard VI(B). An independent auditor is not involved in the normal preparation of research recommendations.

Q8. Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of:

A)   his clients.

B)   both of these.

C)   his employer.

Correct answer is B)

Standard VI(B) addresses the treatment of both these accounts. The accounts of clients and employers have priority over personal accounts.