the management of the investment firm. Which of the following statements is TRUE? This is: A) not permissible since items purchased with soft dollars must provide at least 50% of their benefits to the client. B) permissible since items purchased with soft dollars must provide a benefit to the firm. C) not permissible since items purchased with soft dollars must provide a benefit to the client.
Q6. Jason Wariner manages an equity mutual fund and directs trades to various brokers on the basis of their research coverage of the equity being traded. The commissions paid vary somewhat (i.e., he knows that he could occasionally save on the commission by dealing with a broker other than the one handling the transaction) but are believed to be reasonable in relation to the research and execution services provided. With regard to this practice, which of the following statements is TRUE? This action is: A) permissible; Wariner is not in violation of his fiduciary duties. B) not permissible; Wariner is in violation of his fiduciary duties. C) not permissible; Wariner is not in violation of his fiduciary duties.
Q7. Rochelle Bell is the Chief Investment Officer at a money management company that claims it is in compliance with CFA Institute Soft Dollar Standards. Last year the company had $10 million of soft dollar funds accruing from commissions available but only spent $8 million on research services. This year Bell estimates that the company will have $11 million of soft dollar funds available. Bell analyzes the research services that the firm wishes to purchase and places them into four categories: fully available for soft dollars, mixed usage, not available for soft dollars, and cannot be determined. The total of soft dollars allocated to the first two groups is $7 million, and there are $500,000 of expenditures in the group for which she cannot determine whether they are suitable for soft dollar expenditures. Bell should: A) allocate $500,000 of this year's soft dollars to this last group. B) use the 50-50 rule and allocate $250,000 of soft dollars to this last group. C) not allocate any of the soft dollars to this last group.
Q8. Springfield Investment Advisors uses soft dollars generated with mutual fund transactions to get software that is only useful for the management of client assets. Which of the following statements is TRUE? This is: A) not permissible, since items purchased with soft dollars must provide a benefit to the firm. B) not permissible, since items purchased with soft dollars must be tangible, and software is intangible C) permissible, since items purchased with soft dollars must provide a benefit to the client.
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发表于 2009-1-7 11:05
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