Reading 2-III: Standards of Professional Conduct & Gui accounts, different, allocated, management, class

mayanfang1

Q6. In securing the shares for all accounts under her management, Linda Kammel of Northwest Futures purchased three blocks of shares at three different prices. She then allocated these shares by placing shares from the first block in accounts with surnames beginning with A-G. The second was allocated over accounts H-P, and the third over Q-Z. This action is:

A)   consistent with her responsibilities under the Code and Standards.

B)   not permissible under the Code and Standards.

C)   permissible only if the clients are informed of the allocation procedure.

[此贴子已经被作者于2009-1-9 15:52:04编辑过]

mayanfang1

答案和详解如下：

Q6. In securing the shares for all accounts under her management, Linda Kammel of Northwest Futures purchased three blocks of shares at three different prices. She then allocated these shares by placing shares from the first block in accounts with surnames beginning with A-G. The second was allocated over accounts H-P, and the third over Q-Z. This action is:

A)   consistent with her responsibilities under the Code and Standards.

B)   not permissible under the Code and Standards.

C)   permissible only if the clients are informed of the allocation procedure.

Correct answer is B)

Standard III(B) requires a member to deal fairly with all clients when taking investment actions. Since she knew at the outset that she was going to place shares in all accounts, regardless of the first letter of the surname, all accounts must participate on a pro-rata basis in each block in order to conform to the Standard. Her actions constitute a violation of the Standard concerning fair dealing.

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