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LOS o: Evaluate a firm's investment and trading procedures, including processes, disclosures, and record keeping, with respect to best execution. ffice ffice" />
Q1. Which of the following is NOT one of the three components of the CFA Institute’s Trade Management Guidelines?
A) Disclosures.
B) Measurement tools.
C) Processes.
Correct answer is B)
The CFA Institute’s Trade Management Guidelines are split into three parts: processes, disclosures, and record keeping. These guidelines are meant to assist investment management firms in achieving best execution and maximum portfolio value for their clients.
Q2. Which of the following is FALSE regarding the CFA Institute’s Trade Management Guidelines? They state that investment management firms should:
A) provide general information on their trading techniques, markets, and brokers.
B) hire independent outside consultants to ensure best execution.
C) have policies and procedures that assist in best execution.
Correct answer is B)
The CFA Institute’s Trade Management Guidelines do not require that investment management firms hire independent outside consultants to ensure best execution.
Q3. Which of the following is FALSE regarding the CFA Institute’s Trade Management Guidelines? They state that investment management firms:
A) must disclose their conflicts of interest related to trading.
B) must not disclose documentation concerning policies and procedures to outside parties.
C) should strive for best execution.
Correct answer is B)
Documentation concerning policies and procedures to outside parties should be disclosed to outside regulators, not held within the firm. The CFA Institute’s Trade Management Guidelines state that in regards to record keeping, investment management firms should maintain the documentation supporting: 1) the firm’s compliance with its policies and procedures; and 2) disclosures made to its clients. In doing so, the firm provides evidence to regulators as to how the firm pursues best execution for its clients.
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发表于 2009-4-10 12:45
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