Q1. An analyst likes to trade options in her own account. She does not deem any of her client accounts suitable for option trading. When she finds a favorable options position, in accordance to Standard VI(B), Priority of Transactions, she should:
A) act on it on her own behalf as she sees fit.
B) first tell her clients about it before acting herself.
C) refrain from acting until she notifies her supervisor.
Correct answer is A)
This is not a violation of Standard VI(B), Priority of Transactions, because the investment is not suitable for her clients. If the analyst believes that none of her clients should trade options, she is not obligated to advise them in this instance.
Q2. 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 person working in the mail room.
C) A supervisory analyst who reviews all research reports prior to dissemination.
Correct answer is C)
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.
Q3. Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of:
A) both of these.
B) his clients.
C) his employer.
Correct answer is A)
Standard VI(B) addresses the treatment of both these accounts. The accounts of clients and employers have priority over personal accounts.
Q4. Samuel Goldstein, CFA, is an analyst for Tamarack Securities. Goldstein’s father, Reuben, has a client account at Tamarack. In ordering trades, Goldstein should place orders in:
A) his clients' accounts first, his father's account second, and his account last.
B) all accounts simultaneously.
C) his clients' and his father's accounts in the first group and his personal accounts in the second group.
Correct answer is C)
Standard VI(B), Priority of Transactions, provides that transactions for clients have priority over personal trades. Family accounts that are considered client accounts receive the same treatment as client accounts.
Q5. Andy Rock, CFA, is an analyst at Best Trade Co. The company is going to announce a sell recommendation on Biomed stock in one hour. Rock was a member of the team who reached the decision on Biomed. Rock’s wife has an account at Best Trade Co. that contains Biomed stock. According to the Code and Standards, trading on Rock’s wife’s account can begin:
A) only after the recommendation is announced to the general public.
B) as soon as the information is disseminated to all clients.
C) only after Rock, as a beneficial owner, has given an appropriate amount of time for clients and his employer to act.
Correct answer is B)
Family accounts that are client accounts should be treated like any other firm account and should neither be given special treatment nor be disadvantaged because of an existing family relationship with the member or candidate. Members or candidates may undertake transactions in accounts for which they are a beneficial owner only after their clients and employers have had adequate opportunity to act on the recommendation. Personal transactions include those made for the member or candidate's own account, for family (including spouse, children, and other immediate family members) accounts, and for accounts in which the member or candidate has a direct or indirect pecuniary interest, such as a trust or retirement account. It could be argued that Rock is a beneficial owner of his wife's account and the reason why his wife's account should be treated like any other client account is because it does not state that Rock makes the trades in his wife's account. From that we are to infer that another person other than Rock is managing his wife's account thus she should be treated like any other client.
发表于 2009-1-4 14:43
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