Q7. The following scenarios describe two members of CFA Institute who have supervisory responsibility. § The president of Hawthorne Investments, a newly founded money management firm with five investment professionals, asked Rebecca Long, CFA, to be the company's compliance officer and to develop the company's compliance procedures. Long has an in-depth knowledge of the Code and Standards, but she was too busy to develop a compliance manual herself. Therefore, she copied, with written permission, the compliance manual of a large money management firm. This manual was comprehensive and covered many areas not part of Hawthorne's operations. Long gave the manual to Hawthorne's president, but did not distribute the contents of the program to other appropriate personnel. § A co-worker at Barksdale Capital mentions to Stephen Luck, CFA, that George Trout, a candidate in the CFA Program, may have violated the CFA Institute standard involving priority of transactions. As Trout's supervisor, Luck decided to investigate this allegation but did not begin the investigation until a month after the alleged incident. Luck continued to maintain the same amount of supervision on Trout during the month before he began his investigation of Trout. According to the CFA Institute Standards of Professional Conduct, which of the following statements about whether Long and Luck followed appropriate compliance procedures involving their responsibilities as supervisors is TRUE? A) Both Luck and Long violated the procedures for compliance. B) Luck violated the procedures for compliance, but Long did not. C) Neither Luck nor Long violated the procedures for compliance.
Q8. A firm recently hired Hal Crane, CFA, to be a supervisor in the firm. Crane has reviewed the procedures for complying with the Code and Standards in the company. It is Crane’s belief that the procedures need revision in order to be effective. Crane must: A) refuse supervisory responsibilities in writing until the company adopts an adequate system. B) only send out a petition to fellow workers asking for a change in the procedures. C) both submit a petition to fellow workers and inform the SEC.
Q9. Martin Tripp, CFA, is vice-president of the equity department at Walker Financial, a large money management firm. Of the twenty analysts in his department for whom he has supervisory responsibility, eight are subject to CFA Institute Standards of Professional Conduct. Tripp believes that he cannot personally evaluate the conduct of the twenty analysts on a continuing basis. Therefore, he plans to delegate some of his supervisory duties to Sarah Green, who is subject to the Standards, and some to Bob Brown, who is not subject to the Standards. According to CFA Institute Standards of Professional Conduct, which of the following statements about Tripp's ability to delegate supervisory duties is most correct? A) Tripp cannot delegate any of his supervisory duties to either Green or Brown. B) Tripp can delegate some or all of his supervisory duties to Brown, even though Brown is not subject to the Standards. C) Tripp can delegate some or all of his supervisory duties only to Green because she is subject to the Standards.
Q10. For years John Berger, a CFA charterholder and CEO of a company, relied upon a set of reasonable procedures for preventing violations of the Code and Standards of Professional Conduct in the firm. To not be liable for a violation of the Standards, Berger must: A) both periodically review the procedures and ensure the procedures are monitored and enforced. B) do nothing more than have the set of procedures in place as stated. C) ensure the procedures are monitored and enforced.
| 
发表于 2009-1-9 16:40
| 
